CoinEx, a well-known cryptocurrency exchange, recently found itself in a precarious situation as it faced a security breach affecting its hot wallets.

The warning signals came from leading security firm PeckShield, which detected "suspicious outflows of significant funds from hot wallets."

Julio Moreno, Head of Research at CryptoQuant, corroborated this by noting unusual activity in CoinEx's Ethereum reserves.

The exchange acted swiftly upon identifying these "anomalous withdrawals," immediately mobilising a dedicated task force to investigate the situation.

While the precise extent of the financial damage is still being assessed, initial estimates suggest it exceeds $27.8 million.

CoinEx has unequivocally assured its user base that all their assets remain "secure and untouched." Moreover, the exchange has made a firm commitment to fully compensate affected parties for any losses incurred due to this security incident.

The breach involved unauthorised transactions in Ethereum (ETH), TRON (TRX), and Polygon (MATIC).

In response, CoinEx temporarily suspended both deposits and withdrawals as a precautionary measure.

Additionally, assets from the compromised hot wallets are presently being transferred to more secure cold storage, which currently holds a substantial $89 million.

However, CoinEx has yet to release an official statement detailing the full extent of the breach.

What Can You Do After CoinEx’s Hack?

Navigating the aftermath of the CoinEx security breach can be a challenging endeavour, but taking prompt and informed actions is crucial.

Here are some immediate steps for users caught up in this situation:

1) Stay Informed: Stay vigilant by regularly checking for updates from CoinEx and reliable security sources such as PeckShield. Staying informed enables you to make timely decisions based on the latest information.

2) Update Security Measures: Review and update all security measures associated with your account, including passwords and two-factor authentication (2FA). Consider using hardware wallets for an extra layer of protection.

3) Limit Transactions: Temporarily refrain from conducting any further transactions on the CoinEx platform until the company confirms the issue's resolution. You may also contemplate transferring your assets to a secure, unaffected platform for added security.

4) Communication is Key: Reach out to CoinEx's support team immediately if you notice any irregularities in your account. Swift action can sometimes help mitigate potential losses or unauthorised activities.

5) Engage and Share: Participate in discussions within the broader cryptocurrency community. Online forums, expert opinions, and collaborative efforts can provide valuable insights and support during uncertain times.

Prominent voices in the cryptocurrency industry are advocating for heightened security measures to mitigate the risk of future incidents similar to the recent breach faced by CoinEx.

The manner in which CoinEx navigates this challenging situation carries profound implications for its long-term credibility and the trust of its user community.

Nonetheless, CoinEx is taking decisive steps to reaffirm its commitment to the safety of user funds.

The swift response and comprehensive compensation plans bear testament to this dedication.

The latest update from Wu Blockchain pointed out that "the amount stolen…has risen to $54 million".