Indodax Offline After $22M Hack: Indonesia’s Crypto Exchange Struck

Indodax, the Indonesian cryptocurrency exchange, has recently experienced a security breach, leading to the loss of approximately $22 million in digital assets.

Indodax Suspends Operations Following Security Incident

As reported by blockchain security firm SlowMist on X, the hackers managed to steal various digital assets including Bitcoin (BTC), several ERC-20 tokens from the Ethereum (ETH) network, TRX and USDT tokens from the Tron (TRX) network, Polygon (POL), and ETH from the Optimism (OP) blockchain, totaling an estimated loss of around $22 million.

Indodax has confirmed the breach and temporarily suspended all operations for “maintenance” purposes. The platform reassured users that their crypto assets are secure. The exchange commented:

We are currently carrying out comprehensive maintenance to ensure the entire system is functioning correctly. During this time, access to the INDODAX web platform and application is temporarily unavailable.

Established in 2014, Indodax primarily caters to the Indonesian cryptocurrency market and reported a trading volume just above $11 million in the last 24 hours.

SlowMist’s investigation ruled out the possibility of a hot wallet attack, suggesting that the withdrawal system of Indodax might have been compromised, enabling hackers to access the hot wallet and withdraw assets without detection.

Similarly, digital asset security company Cyvers reported observing “multiple suspicious transactions involving wallets across various networks.” The wallet address believed to be involved in the hack was seen exchanging tokens for ETH. While the hacker’s next actions remain uncertain, they are known to use cryptocurrency mixers like Tornado Cash to obscure the details of their transactions.

Data from CoinMarketCap reveals Indodax has enough reserves to cover the stolen funds. At the time of reporting, the exchange’s total reserves amounted to $367 million, with the majority held in cryptocurrencies such as BTC, ETH, PEPE, SHIB, and USDT. Estimates from Arkham Intelligence, however, suggest the total could be as high as $409 million.

indodax reserves — Source: CoinMarketCap.com

Increase in Cryptocurrency Hacks in 2024

Yosi Hammer, head of AI at Cyvers mentioned to BSCN that the nature and patterns of the Indodax hack closely resemble those employed by the infamous North Korean hacking group Lazarus.

Those acquainted with the cryptocurrency sector are likely familiar with Lazarus, known for executing a series of significant hacks in recent years. One notable instance is the hack of the Indian exchange WazirX, which resulted in a loss of $234 million in customer assets.

A recent report by Immunefi highlighted that hackers are adapting to advancements in cryptocurrency security, as the total value of stolen assets has surged by 15.5% compared to the same period in 2023. As of now, BTC is trading at $56,701, down 1% in the last 24 hours.