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Lykke Crypto Exchange Halts Transactions After Suffering $22 Million Cyber Theft

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Lykke Crypto Exchange Suspends Trading Following $22 Million Hack

The UK-established cryptocurrency marketplace, Lykke, has halted its trading services following an alleged hacking breach which may have led to a staggering theft exceeding $22 million. Originally detected by proactive blockchain detectives on X (previously known as Twitter), this event has rattled the digital currency community, raising serious questions regarding the safeguarding of assets and the importance of bolstering exchange security protocols.

Cyberthief Converts Illicit Crypto Haul

According to an investigation by SomaXBT on June 4, Lykke’s securities were compromised, incurring a loss of cryptocurrencies valued at roughly $19.5 million, which includes 158 Bitcoin (BTC) and 2,161 Ethereum (ETH). SomaXBT revealed that the exchange’s officials were purportedly attempting to conceal this information.

Further investigation revealed the perpetrator had converted all of the stolen Ethereum to DAI, MakerDAO’s algorithmic stablecoin and third-largest of its kind by market cap, and dispersed the Bitcoin into several different wallets. Additionally, Taylor Monahan, developer for MetaMask, unveiled that the overall sum pilfered from the exchange now surpasses $22 million.

Lykke Acknowledges “Security Breach”, Reassures Clientele on Zero Financial Risk

Although initially silent post-incident, Lykke responded to grievances from users unable to access their holdings, by declaring a “security breach” on June 10 via an X statement. The notice stated Lykke UK and Lykke Corp AG promptly deactivated the targeted systems to mitigate further damage. The security vulnerabilities identified have been rigorously scrutinized and resolved, the message affirmed.

In addition to assuring strong financial health supported by ample reserves and a well-diversified portfolio, Lykke also reported the tracking down of the hacker’s IP address, with subsequent commencement of a criminal probe. The company’s communique concluded with emphasis on the temporary cessation of exchange operations to inhibit further losses while investigations proceed. A visit to the exchange’s homepage illustrates a precautionary banner, indicating ongoing maintenance until notification otherwise.

Lykke Exchange
Courtesy of the Lykke Website

This marks Lykke as the second virtual currency trading platform fallen victim to attack within a fortnight, subsequent to DMM Bitcoin, which reported the misappropriation of $320 million in assets on May 31. These lamentable events accentuate the imperative necessity for fortified digital defense measures across services operating within this realm.

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