FixFloat Exchange suffers $26 million in exploit damage: Bitcoin, Ethereum affected

cryptocurrency exchange fixed floating admitted to a serious breach that resulted in the loss of at least $26 million worth of Bitcoin and Ethereum. The incident was confirmed by the exchange team shortly after initial reports surfaced on social media platform X (formerly Twitter).

Details of the attack

FixFloat disclosed the attack following numerous user complaints about trading freezes and missing funds, which prompted the exchange to go into maintenance mode. More than 400 bitcoins worth about $21 million and 1,700 ethers worth about $5 million were withdrawn on February 18, according to on-chain data.

Investigation and Response

Although the exact attack method has not yet been revealed, the exchange team is actively investigating the security breach. They assured users that efforts are underway to address vulnerabilities, strengthen security measures and conduct a thorough investigation. However, specific details related to this incident have not yet been disclosed.

FixFloat Exchange Profile and Impact

It operates as an automated cryptocurrency exchange without user registration or know-your-customer (KYC) verification. Data from SEMrush shows that approximately 26% of web traffic comes from users in the United States. The platform also utilizes the Lightning Network for Bitcoin transactions.

Cybersecurity Challenges in Cryptocurrency

On-chain cybersecurity continues to pose significant challenges to cryptocurrency projects. The incident involving FixFloat highlights the ongoing threats facing both exchanges and decentralized platforms. The cryptocurrency sector remains a target for cybercriminals, as have other ecosystems such as Solana, which has hit the market for service fraud offering malicious tools.

Also Read: Crypto Market Loses $1.9 Billion in 2023 Due to Sophisticated Attacks

Cybercrime is on the rise

According to a report from Chainalytic, ransomware payments are on the rise again, with criminals increasingly targeting high-profile institutions and infrastructure. Last year, supply chain attacks by actors ranging from individual hackers to sophisticated criminal organizations generated a record $1 billion in criminal proceeds.

As the investigation into the exploit continues, users and stakeholders eagerly await further updates on the incident and the exchange’s response efforts.