KEY POINTS
On June 10, the Lykke cryptocurrency exchange announced on social media that they had suspended withdrawals due to a security exploit that occurred on June 4. The exchange reassured users that their funds are secure and will be reinstated.
Effects of Lykke’s Hack
The announcement revealed that the breach impacted both Lykke UK and Lykke Corp AG. The exchange also mentioned that halting withdrawals was a proactive step to prevent further issues.
Established in 2015 in Switzerland, Lykke operates as a centralized cryptocurrency exchange. The company markets itself on its website as a commission-free trading platform and has its roots as a well-known forex broker.
Blockchain security expert SomaXBT reported on June 9 that they had uncovered the exploit. They criticized the Lykke team for allegedly concealing the breach, claiming that Lykke’s CTX was compromised.
A Lykke user voiced concerns on June 8 about the platform’s operational issues and speculated about a potential hack.
Increasing Crypto-related Scams
The reputation of the crypto market has been significantly tainted by hackers and scams. This has left key financial players scratching their heads for solutions.
Meanwhile, Blockchain analysts continue to identify undisclosed security breaches within centralized exchanges. For instance, on April 19, blockchain detective ZachXBT disclosed that the Rain exchange had suffered a hack two weeks prior, leading to a loss of $14.1 million.
Additionally, major crypto Exchanges have formed “Tech Against Scams” aiming to combat fraud in the crypto market. Rain later confirmed the incident, assuring that no client funds were compromised as the deficit was immediately covered using the company’s own funds.
