Indodax Hit by $18M Crypto Heist, Platform Pauses Operations Amid Growing User Concerns

• Indodax suspended operations after a $18M crypto theft. Hackers targeted hot wallets, raising user concerns.
• Hackers moved stolen assets across networks, holding $13M in ETH and millions in other tokens. Investigation ongoing.
• Indodax’s X account mentioned maintenance, but users report missing balances and suspect compromised social media.

Indonesian cryptocurrency exchange Indodax recently suffered a major security breach, resulting in substantial losses. Multiple blockchain security firms reported the attack on Indodax’s hot wallets, which allegedly took place early on September 11. 

During this breach, hackers managed to siphon off digital assets valued at over $18 million. This attack has led to the suspension of operations on the platform, leaving users unable to access their accounts or view their balances. Indodax has since referred to the downtime as maintenance, but user concerns continue to grow.

Hackers Target Multiple Cryptocurrencies Across Different Networks

In the hours following the breach, the hackers swiftly moved the stolen assets across various blockchain networks. Reports show that the attackers currently control 5,584 Ether (ETH), valued at $13 million, spread between the Ethereum and Optimism networks. 

They also possess 6.84 million Polygon (POL), also known as MATIC, worth $2.56 million on the Polygon network, 16.7 million TRX tokens worth $2.55 million on the Tron network, and 25 Bitcoin (BTC) valued at $1.41 million. Furthermore, suspicious activity involving the rapid exchange of various tokens for ETH has raised concerns about further illicit fund movements.

Indodax Confirms Attack Amidst Community Warnings and Concerns

Indodax acknowledged the attack on their platform through their X account, citing maintenance activities as the reason for halting operations. However, multiple users have voiced their frustrations, reporting that their wallet balances have disappeared and questioning the legitimacy of the ongoing maintenance. 

Some users have raised additional concerns after seeing Indodax’s X account promote a giveaway on their Instagram page, leading to suspicions that the exchange’s social media accounts may have been compromised. Blockchain security firm SlowMist indicated that the attack did not involve a direct leak of hot wallet private keys but instead targeted other critical systems, such as the signature machine.

Investigation Underway as Indodax Faces Mounting Scrutiny

In response to the attack, Indodax’s security team is conducting a comprehensive investigation to identify the vulnerabilities that allowed the breach. They have reassured users that their balances remain secure despite the ongoing maintenance. 

However, with over 150 suspicious transactions detected, some totaling millions of dollars, the exchange faces increased scrutiny from the cryptocurrency community. Indodax has yet to provide an estimated timeline for resuming regular operations or disclosing the full scope of the breach, leaving many questions unanswered for now.