Indonesian Exchange Indodax Hit by $15.7M Exploit, User Funds Safe

Indonesian cryptocurrency exchange Indodax has reportedly fallen victim to a security breach, leading to significant outflows of digital assets. Blockchain security firms PeckShield and Cyvers Alerts flagged the incident on social media platform X, identifying suspicious transactions across multiple networks.

Attack Details

According to PeckShield, around $15.7 million in cryptocurrency assets, including 5,204 ETH, 6.8 million POL on Polygon, and 380 ETH on Optimism, were siphoned from the exchange.

Cyvers Alerts further revealed that the suspicious wallet address holds around $14.4 million and has been actively swapping tokens into Ether. The scale of the exploit has raised alarm among users, although Indodax has assured its clients that their balances remain unaffected.

Indodax Responds

In a statement shared on X, Indodax acknowledged the potential security issue, clarifying that its security team is working diligently to resolve the matter. The platform has temporarily taken down its website and app for maintenance to address the exploit.

Indodax reassured users that their funds, both in cryptocurrency and the Indonesian rupiah, are “100% safe.”

Crypto Regulations in Indonesia

This incident brings renewed focus on cryptocurrency regulations in Indonesia, where authorities have taken a proactive stance on crypto trading and exchanges. In March 2023, Indonesia’s Commodity Futures Trading Regulatory Agency (Bappebti) suggested a reevaluation of the nation’s crypto tax policies, urging the Ministry of Finance to reconsider the 0.11% value-added tax (VAT) on each crypto transaction and the 0.1% income tax.

The country’s regulatory landscape has been developing steadily, recognizing cryptocurrencies as commodities and implementing stricter rules for exchanges. Last year, Indonesian police shut down 10 Bitcoin mining facilities, accusing the organizers of electricity theft amounting to nearly $1 million. 

Rising Security Breaches

The cryptocurrency landscape continues to grapple with major security challenges, as highlighted by a mid-year report from cybersecurity firm Cyvers. According to the report, stolen assets surged to nearly $1.4 billion in the first half of 2024, marking a sharp rise in cyberattacks, particularly targeting centralized exchanges (CEXs).

In addition, just in July, India’s largest crypto exchange WazirX suffered a major breach. Its Safe Multisig wallet on Ethereum was compromised, resulting in a loss of $234.9 million worth of funds.

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