Cryptocurrency exchange LCX has lost $8 million in a hack. The attacker stole $3.4 million of stablecoin and $2.46 million of the LCX native token.
LCX loses $8 million
The LCX hack was first disclosed by Peckshield, a data analytics company. The theft took place on January 8, 2022, between 11:23pm and 11:37pm.
The exchange, based in Liechtenstein, quickly confirmed the information. The hacker managed to compromise a hot wallet, resulting in the loss of $7.94 million. On Twitter, LCX said:
” A total of approximately $7.94 million in cryptocurrencies was stolen. $700,000 was frozen. Other LCX wallets were not affected. “
According to PeckShield’s investigation, the hacker managed to transfer 8 types of tokens, including Sandbox (SAND), Quant (QNT), Chainlink (LINK), Enjin Coin (ENJ), Maker (MKR), and the native LCX token.
LCX Loss Chart – Source: PeckShield
At the time of writing, LCX has no plans to return the stolen funds. However, the company has confirmed that it is taking security measures to protect its customers’ funds.
Transit of funds via Tornado Cash
The attacker used the decentralized exchange (DEX) 1Inch to convert all the tokens into Ether. Then the ETH were sent to the Tornado Cash blender which will make tracking the funds more difficult, if not impossible. Peckshield noted that this was a simple game for the hackers, one in which they “transfer, trade and wash”.
A recent report from security platform ImmuneFi found that decentralised finance (DeFi) exchanges and protocols suffered losses of more than $10.2 billion in 2021 due to hacks, scams and other malicious activity.
