After a $70 million attack, CoinEx cryptocurrency exchange safely reopens for 190 coins with updated deposit addresses to protect customer assets.
The cryptocurrency exchange CoinEx is returning following a disastrous hack that cost it $70 million. Today, on Friday, the exchange declared that it had rebuilt its wallet system and made sure that the assets of its users were safe and secure.
Because of this, CoinEx is currently progressively resuming deposit and withdrawal services for 190 coins, a sizable number. In order to avoid irreversible asset loss, the platform has requested that users utilize fresh deposit addresses.
Overcoming Obstacles and Reestablishing Trust
Right now, the wallet system is running smoothly and safely. The exchange stated, “We will progressively restore deposit and withdrawal capabilities for the remaining 500+ cryptocurrencies. As the operations will be conducted on a regular basis, there won’t be any further announcements made separately for each cryptocurrency.
A 100% asset reserve policy has been put in place by the exchange to offer further security against possible intrusions. Notably, CoinEx guaranteed its users that the attack would not harm their assets and that CoinEx’s User Asset Security Foundation would pay any financial losses.
The exchange was forced to stop accepting withdrawals due to a suspected hack earlier this month, which put it in the midst of a security issue. The discovery of unusual withdrawals from a number of hot wallet addresses holding CoinEx’s exchange assets touched off the issue. Initial projections indicate that Ethereum (ETH), Tron (TRON), and Polygon (MATIC) could have lost as much as an astounding $70 million.
CoinEx, a well-known cryptocurrency exchange, rose to prominence shortly after its founding in 2017, especially thanks to its emphasis on Bitcoin.
Money (BCH). The exchange has added futures trading, leveraged trading, options trading, and access to more than 100 token projects to its list of services in recent years.
Following a settlement agreement with the Office of the New York Attorney General (NYAG), CoinEX decided to end its activities in New York in June. In addition, the Hong Kong-based exchange consented to pay $1.7 million to settle claims of incorrect registration and deceptive advertising as a cryptocurrency exchange, including investor refunds.
Heat from Regulations for CoinEX
After the New York Attorney General, Letitia James, charged CoinEX in February with improperly registering as a securities and commodities broker-dealer, the exchange found itself in the regulatory crosshairs. Furthermore, the exchange was accused of deceiving users by posing as a crypto exchange.
“Our laws are designed to protect New Yorkers, and when companies ignore them, they put residents, investors, and businesses at risk,” Attorney General James stated. The day when cryptocurrency businesses such as CoinEx acted as though the laws did not apply to them is long gone. My office will keep up its defense of New York investors and vigilance of state laws.”
Apart from the monetary compensation, CoinEX was forbidden from opening new accounts for clients in the United States; however, current clients could still remove their cryptocurrency assets. Additionally, the exchange was mandated to put geo-blocking mechanisms in place to stop fresh IP addresses from New York from connecting to its online and mobile trading platforms.
