Indonesia’s Largest Centralized Exchange Suffers $18 Million Exploit: Report

As a seasoned researcher who has witnessed numerous incidents involving digital assets and exchanges, this $18.2 million exploit at Indodax, Indonesia’s largest centralized cryptocurrency exchange, serves as yet another stark reminder of the vulnerabilities inherent in the digital economy.

It appears that Indonesia’s biggest cryptocurrency exchange, Indodax, has allegedly experienced a security breach, leading to a total theft of approximately $18.2 million.

After the occurrence, the team admitted to a security issue and momentarily halted activities for upkeep, guaranteeing users that their assets were securely kept.

$18.2 Million Exploit

On September 11th, Cyvers Alerts issued a warning over a platform to alert the exchange about questionable transactions. The company communicated, “Our system has flagged numerous dubious transactions connected to your digital wallets across various networks.

Hey Indodax, our system has flagged several questionable transactions connected to your wallets across various networks. One concerning address currently holds approximately $14.4 million in value and is exchanging tokens into Ether.
Want to keep your company off our alerts radar? Learn how to secure…
— Cyvers Alerts (@CyversAlerts) September 10, 2024

The report also noted that the address already held $14.4 million and was actively swapping the tokens to Ether.

PeckShield has noted substantial withdrawals from Indodax. From their findings, it appears that around 15.7 million dollars’ worth of digital currency was taken out of the platform.

According to the monitoring data, roughly 5,204 Ether was deposited at an Ethereum address, together with around 6.8 million Polygon tokens, and nearly 380 Ether at Optimism.

As an analyst, I’ve gathered some valuable insights from Cyvers Alerts, highlighting approximately 150 transactions that were flagged, leading to a substantial financial loss of around $18.2 million. I strongly recommend Indodax to act swiftly in order to minimize potential further damage.

Indodax Assures Users of Fund Safety

In light of recent reports, the Indonesian exchange addressed potential security concerns by posting an update on X, indicating that they were performing thorough system upgrades to safeguard the reliability of their platform.

At present, our team is performing comprehensive upkeep to guarantee everything runs smoothly within our system. As a result of these maintenance efforts, the INDODAX web platform and app will be momentarily unavailable for use.

Although the security incident continues, the company has been quick to allay concerns, stating, “Rest assured, your funds are completely secure in both cryptocurrency and rupiah.

Apart from expressing gratitude for their understanding and confidence, the team emphasized that the maintenance was crucial for maintaining the safety and seamless flow of their transactions. Furthermore, they assured users that more information would be shared following the completion of the ongoing investigation.

In 2014, Indodax, originally called Bitcoin Indonesia, was founded by Oscar Darmawan and William Sutanto. Initially dealing with Bitcoin and other cryptocurrencies, the platform broadened its services, prompting a rebrand in March 2018, transforming it into what we now know as Indodax, an abbreviation for Indonesia Digital Asset Trading Platform.

Over time since its debut, it’s expanded into the nation’s most prominent cryptocurrency trading platform, boasting millions of users worldwide. At present, it facilitates trades for over 160 different digital currencies and maintains a substantial influence in Southeast Asia. According to CoinGecko statistics, its daily trading volume is approximately $11,430,998, and it has a trust rating of 8 out of 10.

2024-09-11 13:04

Indonesia’s Largest Centralized Exchange Suffers $18 Million Exploit: Report

$18.2 Million Exploit

Indodax Assures Users of Fund Safety

Read More

Minority Mindset