Indodax, an Indonesian Crypto Exchange, Goes Offline Following Suspected $22 Million Cyber Attack

The Indonesian cryptocurrency exchange, Indodax, has reportedly faced a significant security breach that led to an estimated loss of $22 million worth of various cryptocurrencies. As a precaution, the exchange has temporarily suspended all operations, including its web and mobile applications, to conduct a thorough investigation.

Multiple blockchain investigation firms, including PeckShield, Cyvers, and SlowMist, have raised alarms regarding the attack on Indodax’s hot wallets. The compromised funds include various cryptocurrencies such as Bitcoin, Ether, Tron, Polygon, and others.

Following an independent assessment by SlowMist, it was determined that there was a breach in Indodax’s withdrawal mechanism, enabling the hacker to extract substantial funds from the exchange’s hot wallet.

The specific losses incurred by the hack include:

• $1.42 million in Bitcoin
• $2.4 million in Tron tokens
• Over $14.6 million in various ERC-20 tokens
• $2.58 million in Polygon
• $0.9 million in Ether from the Optimism blockchain

Indodax Halts Operations to Investigate Hack

In the wake of these security alerts, Indodax has confirmed the breach and detailed its decision to temporarily shut down all services. The exchange released a statement informing users:

“Currently, we are conducting a complete maintenance to ensure the entire system is operating properly. During this maintenance process, the INDODAX web platform and application are temporarily inaccessible.”

Despite the operational halt, the company has assured its customers that their crypto assets remain secure.

Yosi Hammer, head of AI at Cyvers, has speculated regarding the possible involvement of North Korea’s notorious Lazarus Group in this cyber incident, stating:

“The pattern and the characteristics of the (Indodax) attack highly resemble those of North Korea’s Lazarus Group.”

According to data compiled from various sources, Indodax’s reserves stand at approximately $369 million, which could potentially be utilized to compensate users for their losses.

Increased Targeting of the Crypto Sector by North Korean Hackers

This incident is not isolated, as the largest hack in July attributed to the Lazarus Group resulted in a significant loss of $235 million from another exchange, WazirX.

While the initial attack against Indodax was detected by Cyvers, insights from blockchain forensics firm Elliptic confirmed similar indicators that suggest involvement from North Korean hackers. Additionally, crypto investigator ZachXBT reached similar conclusions regarding this trend of targeting in the crypto ecosystem.