Crypto exchange EXMO hacked: Pauses withdrawals, promises to cover losses

Cryptocurrency exchange EXMO announced that more than $2.8 million in various cryptocurrency assets were stolen from its hot wallets.

According to a Dec. 21 announcement, EXMO “spotted some large withdrawals” early this morning and is currently investigating the incident. The firm said it has already contacted authorities:

“We reported the case to the London police this morning and keep in touch with the Cybercrime team there. We also will conduct a thorough security review that will include all parts of our systems and data.”

EXMO notes that hackers were able to steal crypto assets including United States dollar-pegged stablecoin Tether (USDT) and cryptocurrencies Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), Zcash (ZEC), XRP and Ethereum Classic (ETC).

EXMO reacted by immediately pausing all withdrawals from the platform. Fortunately, the announcement explains that only 5% of all the funds were located in the hot wallets and all the remaining funds were safe in the cold wallets. Lastly, the company promised:

“Most importantly, we want to assure you that if any user fund is affected by this incident, it will be covered completely by EXMO.”

The crypto exchange also reported the addresses of its hot wallets and urged cryptocurrency service providers “to block all the accounts that are connected to these wallets.” Bitcoin and Ethereum Classic blockchain data surprisingly show no outgoing transfers dated Dec. 21.

Ethereum blockchain data shows that 867 ETH (over $534,000) and 50,000 USDT were transferred from the smart contract that the firm uses to manage the Ether and USDT hot wallet in the previous 12 hours. The Bitcoin Cash blockchain reveals that 1,882 BCH ($611,000) were transferred out of the address today.

Data present on the Zcash blockchain indicates that today 10,353 ZEC were transferred from the address, equivalent to about $718,000. The XRP ledger explorer also shows that 727,100 XRP (over $912,000) have been transferred out of the hot wallet.

This all boils down to about $2,825,000 of funds moved out of EXMO’s hot wallets.

Which is still better than hardware wallet maker Ledger’s announcement today that customers’ personal data stolen in June hack—in which no funds were lost—has now been posted online. This includes home addresses, leading some users to fear for their safety.