A Cryptocurrency Exchange Halts Trading: Users Unable to Withdraw Funds
Reports indicate that a cryptocurrency exchange has frozen user assets following a security breach.
Lykke, a UK-based crypto exchange, recently announced the suspension of trading on June 6 due to unauthorized access to its platform. This decision comes in the wake of a security breach that occurred two days prior, resulting in a reported loss of $22 million from suspicious outflows, as highlighted by web researcher SomaXBT and crypto expert Taylor Monahan.
Users of the exchange are currently unable to withdraw their assets, with some reporting missing account balances, hinting at a potential hack. Data shows that approximately half of the stolen funds are in Bitcoin, while the rest is made up of Ethereum, Litecoin, and Bitcoin Cash. Interestingly, withdrawn Ethereum was quickly converted into the DAI stablecoin issued by MakerDAO, while the seized Bitcoin was dispersed across various wallets, a common tactic used by hackers to obscure transaction trails during money laundering.
Despite the incident, the exchange has remained relatively quiet. Lykke CEO Richard Olsen issued an apology for the platform’s downtime in an email to customers, stating that investigations into the security breach are ongoing and reassuring users that their funds are secure. The exchange’s website currently displays a message indicating that the platform is under maintenance due to security concerns and will remain inactive until further notice.
This incident marks the second cryptocurrency exchange attack in recent weeks, following the theft of $320 million from the DMM Bitcoin platform on May 31. It is important to note that this article does not constitute investment advice. To trade over 300 cryptocurrencies, you can sign up with Binance exchange at a 20% commission discount through this link. For more exclusive news, analytics, and on-chain data, follow our Telegram and Twitter accounts.
