Coinhako exchange suspended the withdrawal of crypto assets due to the attack

The Singapore cryptocurrency exchange Coinhako has restricted the withdrawal of users ‘ cryptocurrencies. The exchange reports that it was the victim of a “sophisticated attack”.

Last Friday, the Singapore exchange informed users that the functions of sending funds from accounts were temporarily disabled. Although a spokesman initially said it was necessary “to maintain the network,” the company admitted on Saturday that it was the victim of an attack.

The exchange also said that the introduction of restrictions is necessary to prevent “unauthorized transactions” until the issue is fully resolved. The platform did not provide additional information about the nature of the attack or any information about whether crypto assets were stolen.

“We discovered a sophisticated and coordinated attack on certain Coinhako accounts and disabled the function of sending cryptocurrencies as a preventative measure,” a spokesperson for the platform said in the exchange’s telegram channel.

It is assumed that this attack directly affected less than 20 Coinhako users. A spokesperson for the exchange said that the attack did not affect the wallet, and users ‘ private keys were not affected.

The Coinhako exchange was launched in 2014 and has become a popular cryptocurrency gateway for Singapore traders through its trading pairs with the Singapore dollar. The area opened to off-exchange trading in October 2019.

In an interview with CoinDesk, Coinhako CEO Yusho Liu said that sending crypto assets by users will continue to be suspended as a ” key counter-measure against unauthorized transaction outflows.” The exchange also reset passwords and two-factor authentication for all users.

Deposits, trading services, and Fiat currency withdrawals are still available. Liu confirmed that users affected by the attack received full compensation. The exchange did not respond to questions about the nature of the attack.

In December 2014, Coinhako received an investment from venture capitalist Tim Draper shortly after leaving Boost VC, a startup accelerator run by his son Adam Draper. Coinhako plans to resume full operations on March 1.

The exchange almost does not appear in the headlines of the industry media. However, in 2017, Coinhako informed its clients that it would stop trading in pairs against the Singapore dollar. Then its representatives said that one of the largest banks in Southeast Asia, DBS Group Holdings, closed the company’s account without any explanation.