British Cryptocurrency Exchange Lykke Suspends Operations Following Suspected $22 Million Hack

The British digital currency platform Lykke has temporarily halted its exchange operations following the apparent theft of approximately $22 million due to a cyber-attack.

The break in operations at the cryptocurrency exchange has raised alarms about the robustness of security protocols at platforms dealing with virtual currencies.

Trading Suspended at Lykke After Suspected $22M Theft

Lykke revealed it experienced “unauthorised access” that surfaced via revelations from the online security researcher SomaXBT. Crypto defense specialist Taylor Monahan and others reported $22 million worth of suspicious transfers.

Intriguingly, the breach occurred shortly after initial signs of unauthorised intrusion were detected, leading the company to cease all its trading activities immediately.

Experts point out that the pilfered funds included a substantial amount of Bitcoin, alongside various Altcoins including Ether, Litecoins, Bitcoin Cash, as unveiled by blockchain transaction records.

Post-theft, the illicitly obtained Ether was converted to DAI stablecoin and funneled through various accounts—a method commonly used by cybercriminals to obscure the origin of stolen funds.

Immediate Steps and Feedback Following the Security Breach

Acting fast post-breach, Lykke indicated that its service was undergoing maintenance and reassured its clientele that their capital was protected, despite some reporting zero balance issues. CEO Richard Olsen addressed the matter in a communication to users, stressing the organisation’s comprehensive response to the infringement of security.

“Your funds are secure because Lykke operates across a broad portfolio and has ample financial reserves.”

Incidentally, the Lykke incident isn’t unprecedented in the crypto space. Shortly prior, another trading platform, DMM Bitcoin, suffered a significant breach with a loss of $320 million, casting a spotlight on persistent vulnerabilities in the sector.

Not to mention, the UwU Lend Protocol attack that occurred hours ago, in which the DeFi platform was stripped of $19.3 million in mere minutes, punctuating the urgency for fortified digital defenses.

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