Indonesian cryptocurrency exchange Indodax has suffered a major security breach, resulting in the theft of approximately $22 million in digital assets. The hack, which took place on September 11, targeted the platform’s hot wallets, according to a report by blockchain analytics firm SlowMist.
Details of the Attack
SlowMist’s report indicates that various tokens were stolen during the breach. The attackers quickly converted the stolen assets into Ethereum, TRON, Polygon, and Bitcoin. Blockchain forensics firm Cyvers has also verified that the stolen funds were swapped on-chain, complicating recovery efforts.
Indodax Responds to the Breach
Indodax has confirmed the security breach and responded by posting an update on its official X account. The exchange acknowledged the issue and informed users that its security team had detected a “potential security issue.” They are currently performing comprehensive system maintenance to address the breach.
The platform has temporarily suspended all operations but reassured users that their funds, both crypto and fiat, remain secure. Indodax has not yet provided detailed information regarding the breach’s specifics or the full extent of the damage.
The exchange stated, “We are conducting complete maintenance to ensure the entire system is operating properly. During this maintenance, the INDODAX web platform and application are temporarily inaccessible. However, we assure you that your balance remains 100% safe, both in crypto and rupiah.”
Company Background
Founded in 2014 by Oscar Darmawan and William Sutanto, Indodax is one of Indonesia’s largest cryptocurrency exchanges, boasting over 4.3 million verified users. It operates under the regulations of the Commodity Futures Exchange Supervisory Board and the Ministry of Communication and Information Technology of Indonesia.
New Crypto Regulations in Indonesia
In response to growing concerns in the crypto sector, Indonesia’s Financial Services Authority (OJK) will implement new regulations in January 2025. These regulations aim to guide banks, insurance companies, and other financial entities on utilizing new technologies and exploring innovative financial solutions.
The new rules acknowledge the significant impact of technological advancements on financial products and services. To ensure a smooth transition, the OJK is collaborating with the crypto regulator Bappebti and Bank Indonesia.
Moreover, the OJK is engaging in international collaborations to develop a comprehensive crypto policy. Partnerships have been established with financial authorities in Malaysia, Singapore, and Dubai to create a robust regulatory framework. Drafted Memorandums of Understanding include agreements with Malaysia’s Bank Negara, Singapore’s Monetary Authority, and Dubai’s Virtual Asset Regulatory Authority.
Growth of the Indonesian Crypto Market
Indonesia’s crypto market continues to expand rapidly. In the first two months of 2024, over 19 million individuals invested in crypto assets. Recently, Binance’s subsidiary, Tokocrypto, secured a Physical Crypto Asset Trading License, further highlighting the sector’s growth and regulatory developments.
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