Crypto worth $94 million stolen after Japanese crypto exchange hacked

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Liquid, a Japanese cryptocurrency exchange, said on Thursday that it got hit by a cyberattack in a theft estimated at around $94 million worth of Ethereum and other digital coins. Liquid ranks among the top 20 cryptocurrency exchanges worldwide in terms of daily trading volumes, according to CoinMarketCap data.

Liquid posted on Twitter “We are sorry to announce that LiquidGlobal warm wallets were compromised, we are moving assets into the cold wallet. We are currently investigating and will provide regular updates. In the meantime, deposits and withdrawals will be suspended.”

Cold wallets operate offline without any access to the internet, which makes them safe from online hackers. Hot wallets remain connected to the internet and therefore are considered risky in terms of cyberattacks.

Important Notice: We are sorry to announce that #LiquidGlobal warm wallets were compromised, we are moving assets into the cold wallet.

We are currently investigating and will provide regular updates. In the meantime deposits and withdrawals will be suspended.

— Liquid Global Official (@Liquid_Global) August 19, 2021

Meanwhile, responding to investors the exchange stated,” Liquid’s teams are still assessing the attack vector used and taking measures to mitigate the impact to users. More information will be provided as it becomes available via Liquid Help Center & Liquid Global Twitter.”

“During this difficult period, we greatly appreciate the support from our customers, other exchanges, security experts, and the broader crypto community. Liquid will continue to do everything in its power to mitigate the impact from this incident and restore full service as soon as possible.”

This is the second hack in the week. Before this Poly Network, became the victim of the largest cryptocurrency heist when the hacker exploited the vulnerabilities in the platform and stole $610 million worth of cryptocurrency assets.

Following this, the company took to Twitter and asked the hacker to return the stolen assets while announcing the hack. Surprisingly, the hacker responded to the message and returned over $340 million initially to the platform. The hacker who is being called ‘Mr. White Hat’ on Twitter, even conducted a Q&A by encrypting messages within transactions and said he did the hack for fun. He has now returned nearly all of the $610 million-plus they stole.