Liquid exchange victim of an attack

Liquid exchange attacked by hackers

Japanese exchange platform Liquid confirmed the information in a tweet on August 19. An attack targeting its “hot wallets” resulted in the loss of approximately $ 80 million in digital assets.

Important Notice:
We are sorry to announce that #LiquidGlobal warm wallets were compromised, we are moving assets into the cold wallet.

We are currently investigating and will provide regular updates. In the meantime deposits and withdrawals will be suspended.

– Liquid Global Official (@Liquid_Global) August 19, 2021

In general, exchanges store their clients’ cryptocurrencies using a combination of cold wallets (literally “cold wallets”) and hot wallets (or “hot wallets”). The latter are more vulnerable because they are directly connected to the Internet.

Liquid’s security team quickly informed their users that their funds had been fully transferred to cooler, more secure storage wallets. As for the assets hijacked by hackers and moved out of the platform, the receiving addresses have been identified and shared in another tweet.

For now, withdrawals and deposits have been suspended on the exchange, while the team has promised “to provide regular updates as they investigate.”

👉 On the same theme – Hacker exploits Popsicle Finance bug and drains $ 20 million

Losses that would amount to $ 80 million

Since the announcement, Liquid’s team has identified the blockchain addresses – Bitcoin (BTC), Ethereum (ETH), Ripple (XRP) and Tron (TRX) – of individuals receiving the stolen funds and shared them on its Twitter page. .

This initiative allowed other exchanges to protect themselves. This is the case with Kucoin, another Japanese platform. Its CEO, Jonny Lyu, announced on his Twitter page that he had blacklisted the suspected addresses of hackers.

As of this writing, Liquid has yet to confirm the exact amount of assets that have been stolen. However, by following the on-chain data flow thanks to the addresses provided by the exchange, an estimate could be made.

In total, the four addresses received over $ 80 million in cryptocurrency and are believed to still be in possession of around $ 74 million.

The Bitcoin address received 107 BTC, worth $ 4.7 million. Several transactions, from only two sending addresses, made it possible to route the stolen bitcoins. Several Ethereum addresses have received $ 69 million worth of ETH and various ERC-20 tokens in the past 12 hours. As for the Tron and XRP addresses, they saw a little over $ 10 million in transit.

👉 To go further – The DAO Maker platform victim of an attack – $ 7 million stolen from users

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About the Author: Lilian Aliaga


Freelance writer located between Paris and Toulouse. I want to share my passion for the world of cryptocurrencies with as many people as possible. I am also interested in technical analysis and trading.
All articles by Lilian Aliaga.

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