FAQ About Security Incident

7. When will withdrawal be enabled? Why are all users' assets withdrawals closed, not just the hacked wallet's?

Through our preliminary investigation, we have determined the root cause of this incident to be a compromised private key for our hot wallets which we temporarily used to store the exchange's assets to facilitates deposits and withdrawals. To best safeguard our user assets, we have suspended the withdrawal service to avoid further uncertainty around user funds. Also, we have fixed system vulnerabilities and transferred remaining assets securely. Our team is currently focused on building and deploying an entirely new and robust wallet system to handle activities within the 211 chains and 737 assets. We expect finalization on the new wallet system next week, after which withdrawals will gradually resume after stringent security check. Your patience is much appreciated during this process. Please refer to our website for timely updates.

8. Does CoinEx have a program to buy back stolen coins/tokens?

We fully recognize that we are playing a paramount role in the blockchain ecosystem, and an exchange's prosperity relies wholly on the trust of its users. Regarding compensation plans for the stolen assets, we are now formulating options. Please be patient with us during this process. We will announce accordingly once finalized. The compensation will be provided on a per-coin basis, with details to follow in our next official announcements. Please stay tuned to our official announcements.

9. Has CoinEx identified the identity of the hacker?

The hacker's identity remains under investigation. We have noted attribution claims made by some security firms, but our current focus is to expeditiously build and deploy the new wallet architecture and restore impacted users and functions, which is expected to finalize next week. Additionally, we have opened communication channels to the hackers in hopes of proactive engagement toward a mutually agreeable resolution.

10. Are users of other products (ViaBTC, ViaWallet, etc.) affected by this hack?

Through the expeditious containment response enacted by our risk management team, the breach was sealed off. Furthermore, each product line operates independently with its own risk control system, so issues affecting one will not impact the others. Therefore, rest assured in continuing to use our other products and services. Our security and risk management teams are proactively working on robust upgrades across the existing infrastructure to enable services with complete peace of mind.

11. What are your future plans to ensure assets security and build a trustworthy brand image?

First, we will further upgrade our security protocols and risk management systems.

Second, we will increase the frequency of vulnerability assessments and strengthen our early warning mechanisms for potential attacks.

Third, we will establish CoinEx Risk-Prevention Fund to enhance our preparedness and response capabilities for contingencies.

Fourth, we will proactively collaborate with security firms and industry partners to rebuild our security infrastructure.

Fifth, we urge broader cooperation across the industry to build a healthy, stable and sustainable crypto environment together.

We firmly believe that with sincerity and perseverance, we will continue to earn the community's trust and support.

🔹CoinEx - Making Crypto Trading Easier.

Find CoinEx: Web | Twitter | Telegram | Announcement | Discord | Facebook | Instagram | Medium | Reddit | YouTube

CoinEx’s Open Letter to Hackers

To Hackers,

We entered this industry with a vision of “making the world a better place via blockchain.” Like millions of blockchain enthusiasts who share the same faith, we strive to build an open, interconnected, and inclusive blockchain ecosystem that welcomes everyone’s participation. We believe you share similar aspirations. Whether you’re dissatisfied with the current state of blockchain security or simply testing the security of the exchange system, we hope to build a sincere and open channel of communication. Through this channel, we can fully express our demands and engage in constructive discussions to find a reasonable solution. We firmly believe that dialogue and negotiation are the only effective solution.

We are well aware of the weaknesses and areas for improvement within the CoinEx team. This incident has come as a profound lesson for us and has alerted us to the fact that the security of exchange assets must never be compromised. The affected assets are not just numbers; they represent the trust millions of global users have placed in us. We hope you recognize the impact of this event on each one of those users. We would appreciate it if you understand the concerns and frustrations of these affected users. We sincerely invite you to work with us to resolve this issue in a securer, more reasonable, and more user-friendly manner.
We encourage you to communicate and negotiate with us actively on the blockchain or through our official email address (support@coinex.com). If you are willing to return the stolen assets, we will offer you a generous bug bounty as a reward.

Undoubtedly, blockchain is a fascinating and challenging field that attracts many geeks. In the industry, there are numerous white hat hackers who work anonymously. With their exceptional skills, they have achieved significant recognition and financial success.

Stealing a significant fortune through cyberattacks is considered a “severe criminal act” in any country, and legal responsibilities cannot be evaded. In this incident, you have demonstrated your technical expertise and talent, showcasing your potential for excelling as a white hat hacker in the blockchain industry.

After this incident, CoinEx will thoroughly upgrade its security architecture, investing more funds and manpower into security. If possible, we sincerely invite you to discuss the future upgrade of CoinEx’s security system. Together with global blockchain enterprises and practitioners, we will safeguard a free, open, secure, and trustworthy blockchain ecosystem.

Best Regards,
CoinEx Team

CoinEx Team Work Progress Update

On September 16th, here's the update on the CoinEx team’s investigation and actions regarding the hack

In collaboration with leading blockchain security organizations, we're actively tracing the hackers’ addresses and coordinating with fellow exchanges for the timely freezing of these addresses.

We are in communications with affected crypto projects, examining potential asset protection solutions for our users.

Comprehensive assessments of the affected cryptos, their respective amounts, USD values, and other relevant data are underway. This detailed analysis aims to pave the way for the safe resumption of our withdrawal services.

Stay informed with our ongoing updates on our official website announcement: https://announcement.coinex.com/hc/en-us/articles/19187420867348-Latest-Progress-of-the-Hacking-Attack-on-Sep-12-2023-Updated-on-Sep-15-

#CoinExResponseUpdate

CoinEx Team Work Progress Update on September 17th

1. In collaboration with blockchain security companies, we are actively tracing and identifying the stolen funds and associated hacker addresses. Notable progress has been made.

2. Currently, we've completed 30% of our wallet system reconstruction.

It's worth noting that this comprehensive wallet system reconstruction encompasses 211 chains and 737 cryptocurrencies. Given the magnitude of this undertaking, we kindly ask for your continued patience. Rest assured, updates on our progress will be regularly provided. Thank you for standing with us.

#CoinExResponseUpdate

CoinEx Team Work Progress Update on September 18th

1. As of today, we have successfully completed 50% of our wallet system reconstruction.

2. We've finalized our strategy to resume withdrawals and are set to progressively resume these services within 7 working days. Ensuring 100% asset security remains our top priority before reactivating withdrawal functionalities.
For certain cryptocurrencies with a low circulating supply, we are strategizing compensation due to market purchase challenges.

We fully recognize the distress and uncertainty experienced by our users during this waiting period. However, our utmost priority remains ensuring that our new wallet system offers the highest level of security. Thank you for standing with us.

Caution: Any claims stating that CoinEx has resumed withdrawal services are false and potentially scam-related. Please immediately report such messages to us and do not engage with these deceptive communications.

Lastly, we want to reiterate with utmost clarity: CoinEx users’ assets are 100% secure and 100% remain fully intact.

CoinEx Will Suspend Services for Server Upgrade on Sep 21, 2023
https://announcement.coinex.com/hc/en-us/articles/19317801379604-CoinEx-Will-Suspend-Services-for-Server-Upgrade-on-Sep-21-2023

#CoinExResponseUpdate

CoinEx Team Work Progress Update on September 19th

Caution: Any claims stating that CoinEx has resumed withdrawal services are false & scam-related. Please report such messages to us & don't engage in these communications.

1/ Over 80% of our wallet system reconstruction has been successfully completed.
2/ We're in the process of initiating preparations for the withdrawal function (details regarding website upgrades & maintenance will be shared later today).

Details about the resumption of withdrawals, including specific dates, times, and arrangements, will be announced on the CoinEx website. Please stay updated on our announcements for the latest information.

Once again, we deeply appreciate your support and understanding.

CoinEx Will Resume Deposit and Withdrawal Services of BTC, ETH, USDT, USDC, etc. Estimated on Sep 21, 2023
https://announcement.coinex.com/hc/en-us/articles/19319131621908-CoinEx-Will-Resume-Deposit-and-Withdrawal-Services-of-BTC-ETH-USDT-USDC-etc-Estimated-on-Sep-21-2023

#CoinExResponseUpdate

CoinEx Team Work Progress Update on September 20th

We'll be resuming Deposit & Withdrawal services for $BTC, $ETH, $USDT, $USDC & other cryptos, starting on Sep 21, 2023 at 08:00 UTC.

Starting from Sep 21, 2023 at 08:00 UTC, we'll generate NEW deposit addresses for these assets.

Given the anticipated increase in withdrawal requests in the upcoming days, there might be some delays in processing. As we ascertain system stability, we'll progressively reintroduce more assets to our deposit & withdrawal services. Please stay tuned for our official updates.

We deeply appreciate the trust our users have placed in CoinEx during this time and we at CoinEx are dedicated to continually refining our services to uphold that trust.

Dear community,

We are currently undergoing system upgrades and maintenance to improve our services. As a result, all services, including trading and asset management, will be temporarily suspended for approximately 4 hours.

We apologize for any inconvenience caused and appreciate your understanding during this maintenance period. Our team is working diligently to minimize the downtime.

More details: https://announcement.coinex.com/hc/en-us/articles/19317801379604-CoinEx-Will-Suspend-Services-for-Server-Upgrade-on-Sep-21-2023

Hello community, a quick update: our upgrade and maintenance is taking a bit longer than anticipated and is expected to extend by approximately one hour.

Thank you for your patience.

CoinEx Has Updated the Deposit Addresses of ALL Crypto Assets
https://announcement.coinex.com/hc/en-us/articles/19388273093524-CoinEx-Has-Updated-the-Deposit-Addresses-of-ALL-Crypto-Assets

Hi CoinEx community, the Deposit & Withdrawal services for $BTC, $ETH, $USDT, $USDC, and other cryptos have now been resumed.

🚫 DO NOT use old addresses. 🚫
🚫 Cryptos sent to outdated addresses(before September 12, 14:30 UTC) will start being addressed progressively after we resumed the withdrawal & deposit services earlier today. However, any new transfers(After September 21, 08:00 UTC) to these old addresses will be lost. 🚫

Thank you for your support during this period.

If you cannot see your asset, please try to log out from your account and re-login on your mobile App.

⚠️⚠️⚠️Be Aware Of Potential Scams⚠️⚠️⚠️

Earlier today, some users reported that several impersonators pretended to be CoinEx Official and committed fraud activities, we hereby kindly remind ALL CoinEx users:

1.Be Aware of Scams:
It has come to our attention that scammers are taking advantage of the situation by posing as official representatives of CoinEx and attempting to deceive users. These scammers may contact you through various channels, such as email, social media, or private messages. Please exercise caution and be aware of the following:

🔸Official representatives will never initiate contact with you first, especially to solicit payments or ask for sensitive information. If you receive such requests, it is likely a scam.
🔸Be skeptical of unsolicited messages or emails claiming to be from CoinEx. Always verify the authenticity of the sender and their intentions before taking any action.

2. Protect Yourself:
To ensure the safety of your funds and personal information, we strongly advise you to:

🔸Never share your account credentials, passwords, or any sensitive information with anyone, including individuals claiming to be from CoinEx.
🔸Enable two-factor authentication (2FA) to add an extra layer of security to your account. This feature can help protect against unauthorized access.
🔸Regularly review and update your account security settings, including password strength and email notifications.
🔸Keep an eye out for any suspicious activities or requests and report them immediately to our official support channels.

3. Verify Official Channels:
To verify the authenticity of any communication claiming to be from CoinEx, please visit our official verification page at Official Verification Channel. This page will provide you with the verified and official channels through which we communicate with our users.

We apologize for any inconvenience caused by this security incident and appreciate your understanding and cooperation. Your safety and the security of your funds remain our top priority.

Please stay tuned for further updates on resolving the security breach and restoring our services. We are committed to providing you with a secure and reliable trading experience.

If you have any questions or need help, please contact our official support team at support@coinex.com.

CoinEx Will Resume Deposit and Withdrawal Services of 180 ERC20 Tokens, Estimated on Sep 22, 2023
https://announcement.coinex.com/hc/en-us/articles/19321075212308-CoinEx-Will-Resume-Deposit-and-Withdrawal-Services-of-180-ERC20-Tokens-Estimated-on-Sep-22-2023

❓CoinEx Community FAQ

1. I had a deposit during the hack, but it was not credited to my account yet.

- Cryptos sent to outdated addresses before the suspension of deposit & withdrawal will be addressed progressively after September 21, 08:00 UTC.

- Cryptos sent to outdated addresses during the suspension of deposit & withdrawal will be addressed progressively after September 21, 08:00 UTC.

- All deposits sent to the outdated addresses after the resumption of deposit & withdrawal on September 21, 08:00 UTC will face potential loss.

2. My assets balance is showing 0, what happened?

If your assets aren't visible, please log out and sign back in on your mobile app.

3. When will other altcoins' deposit & withdrawal service be resumed?

We aim to resume the deposit & withdrawal services for other altcoins (not covered in yesterday's and today's announcements) within the next 7 working days.

4. What if users converted their crypto into stablecoin like usdt, usdc after withdrawal service resumed? Will the sell wall dump the market and lead to price disparities?

Indeed, such a situation may happen, but it's merely a transient price fluctuation. The cryptocurrency market is inherently open and free-flowing. Any price disparities will inevitably be balanced by natural market forces.

❓CoinEx Community FAQ (22nd Sept)

1. We couldn't receive the SMS notification for login

Typically, challenges with OTPs stem from issues with local mobile service providers, which may include roaming complications, delayed message deliveries, or switching to a local SIM card. To pinpoint the issue, please consider submitting a support ticket.

For a more reliable and secure method, we strongly recommend using TOTP (Time-Based One-Time Password) as your two-factor authentication choice. TOTP ensures efficient and safe OTP generation.

2. CoinEx official announcement shows that 180 currencies on Erc20 network withdrawal service will be resumed at 3AM UTC 22th Sept 2023. I tried to withdraw but not managed to do it.

Your withdrawal is currently being processed, and we will complete it as soon as possible.

Thank you for your patience and understanding.

CoinEx Will Gradually Resume Deposit and Withdrawal Services
https://announcement.coinex.com/hc/en-us/articles/19420535560084-CoinEx-Will-Gradually-Resume-Deposit-and-Withdrawal-Services

#CoinExResponseUpdate

As of today, we've reactivated deposit & withdrawal services for 346 cryptocurrencies.

For full details, please visit: https://www.coinex.com/en/fees?type=deposit

Our team is building up validation points and synchronizing across various public chains. Each chain possesses unique characteristics and technological challenges.

Due to the intricate nature of configuring these validation points on different public chains, and the intricate complexities involved in building up these validation points for various public chains, it will take time to resume deposit & withdrawal.

For future updates on deposit & withdrawal resumption, please refer to our official Fees Standard page & our social media channels.

Thank you for your patience & support.

Caution: Only the cryptocurrencies specified in last week's announcement & Fees Standard page are available for deposit & withdrawal. Any claims stating that CoinEx has resumed services for other cryptocurrencies are false & scam-related.