Indodax Crypto Exchange Halts Operations Following Alleged $22 Million Security Breach

An Indonesian crypto exchange, Indodax, has reportedly fallen victim to a significant hack, just days after the FBI warned investors of increasing crypto-related cyberattacks. Based in Bali, the exchange, which has been operating for a decade, was breached by hackers on Wednesday. Blockchain security firm SlowMist estimates that approximately $22 million (roughly Rs. 184 crore) worth of cryptocurrencies were stolen. The affected digital assets include Bitcoin, Tron, Ether, Polygon, Tether, Shiba Inu, and Uniswap.

According to SlowMist, the hackers managed to siphon off the funds by exploiting vulnerabilities in Indodax’s infrastructure. The report suggests that the attackers gained access to internet-connected hot wallets, making it easier for them to move assets across multiple networks. CertiK, another blockchain security firm, corroborated SlowMist’s findings, adding that the hack targeted multiple wallets that were connected online at the time of the breach.

In the wake of the attack, Indodax released a public statement via X (formerly Twitter). In the statement, the exchange acknowledged the security breach but reassured its users that their balances remain secure. “Our security team has discovered a potential security issue on our platform,” the statement from @Indodax read. “But don’t worry, we can assure you that your balance remains 100 percent safe both in crypto and rupiah.”

As a precautionary measure, Indodax has temporarily suspended some of its services to assess the full extent of the breach. The exchange emphasized that it is working closely with blockchain security firms and law enforcement authorities to track down the stolen funds and bring the attackers to justice. Despite these assurances, the attack has shaken investor confidence, leading to questions about the security measures in place for other crypto exchanges in the region.

This incident comes at a time when crypto-related cybercrimes are on the rise globally. The FBI recently warned of increasing threats targeting both exchanges and individual crypto holders. The latest breach of Indodax is likely to trigger further scrutiny of security practices across the industry, with more exchanges expected to bolster their defenses against such attacks.

Indodax is expected to provide further updates as investigations progress, but for now, the breach serves as another reminder of the vulnerabilities within the crypto ecosystem. Users are urged to take extra precautions, such as moving their assets to offline wallets and enabling multi-factor authentication, to protect against future incidents.