Cryptocurrency Exchange Halts Trading: Users Unable to Withdraw Funds
Reports indicate that a cryptocurrency exchange has frozen users’ assets following a security breach.
Lykke, a UK-based crypto exchange, recently announced the suspension of trading on June 6 due to unauthorized access to its platform. This decision comes in the aftermath of a security breach that resulted in a loss of $22 million in suspicious outflows, as revealed by web researcher SomaXBT and crypto defense expert Taylor Monahan.
With a monthly volume of $2.5 million, Lykke is currently prohibiting users from withdrawing their assets, with some users reporting missing account balances suggesting a potential hack. The stolen amount, comprising Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, was immediately converted into the DAI stablecoin issued by MakerDAO. Hackers have employed a strategy of distributing the seized Bitcoin to multiple wallets to obfuscate the transaction trail during money laundering.
Despite the incident, Lykke’s CEO Richard Olsen has reassured customers that their funds are secure, emphasizing the exchange’s diversified business and strong capital reserves. The platform remains under maintenance following the security breach, with no timeline for reactivation.
This marks the second cryptocurrency exchange attack in recent weeks, following the $320 million theft from the DMM Bitcoin platform on May 31. It is important to note that this information is not investment advice.
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