Indonesian Exchange, IndoDax Loses $18 Million To Cyberattacks
IndoDax exchange now joins a growing list of CEX to suffer hacks in recent years.
IndoDax, one of Indonesia’s largest cryptocurrency exchanges, has fallen victim to a cyberattack by hackers. According to a report by blockchain security firm CyberAlert, the total estimated loss from the breach stands at approximately a staggering $18.2 million.
The hack involved more than 150 suspicious transactions and specifically targeted the exchange’s hot wallets, compromising a wide array of digital assets.
Additionally, the hacked accounts had to contain in them about 25 BTC worth $1.41 million, 5,584 ETH worth $13 million, 16.7 TRX valued at $2.55 million, 6.84 POL worth $2.56 million, and Optimism (OP).
Furthermore, $14.4 million remains in the hacker’s presumed wallet, with ongoing efforts to track and recover the funds.
Hacker’s Decentralized Exchanges Use Slow Recovery
To complicate recovery, the hackers have begun converting the stolen funds into Ethereum showing the high level of sophistication of the cyber attack.
According to CyberAlert, the perpetrator immediately started exchanging parts of the stolen assets for ETH via decentralized exchanges—an increasingly common tactic in cryptocurrency hacks.
However, the method makes it significantly more difficult for authorities to trace the funds, as Ethereum can be swapped for various other assets or moved through multiple wallets.
Historically, cryptocurrency exchanges have struggled to recover stolen funds after such attacks, making this case particularly concerning for IndoDax users.
IndoDax’s Swift Response
Shortly after the hack, Indodax informed users about a temporary shutdown of services. The company said in a statement that “we are conducting complete maintenance to ensure the entire system is operating properly. During this maintenance process, the INDODAX web platform and application are temporarily inaccessible.” IndoDax reassured users of the safety of cryptocurrencies saying that they had everything under control.
Nonetheless, the incident exposes the increasing vulnerabilities of centralized cryptocurrency exchanges (CEXs). According to a survey by Cyvers, cryptocurrency exchanges have already lost over $1.4 billion to hacks in 2024 alone, making these platforms prime targets for cybercriminals.
The rapid evolution of hacking techniques, combined with the decentralized and pseudonymous nature of cryptocurrencies, makes it harder for exchanges to stay ahead of potential threats.
