With $44 million stolen, the crypto world is once again reminded of its vulnerabilities.

Attack Originated from Internal Liquidity Account

According to CoinDCX CEO Sumit Gupta, the breach stemmed from an internal account used for liquidity provision with another exchange. Hackers drained $44 million through what Gupta described as a “sophisticated server breach.”

“No user funds were affected,” Gupta assured. “The compromised account was isolated swiftly, and the loss will be covered entirely by our treasury reserves.”

Funds Traced Across Chains

On-chain analyst ZachXBT traced the attacker’s wallet back to Tornado Cash, where it was funded with 1 Ethereum. The stolen funds were then partially bridged from Solana to Ethereum, making tracking difficult.

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The incident echoes a similar hack on WazirX—another Indian exchange—exactly one year ago to the day, which resulted in a $235 million loss. Analysts see the timing as a grim reminder of persistent cybersecurity gaps in the crypto sector.

Wave of Recent Crypto Exploits

• Nobitex (Iran): $100 million stolen on June 18; source code leaked.
• GMX V1: $40 million drained on July 9, later returned for a $5M bounty.
• Arcadia Finance: $3.5 million lost due to smart contract exploit.

These repeated breaches stress the urgent need for better risk management in both centralized and decentralized ecosystems.

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The post CoinDCX Suffers $44M Hack in Sophisticated Server Breach appeared first on Coin Engineer.

Social Engineering Tactics of the Hackers

According to the FBI, the attack was carried out by the North Korean-linked TraderTraitor group, known for targeting company employees through social engineering.

In March, a North Korean threat actor posed as a fake recruiter on LinkedIn and contacted an employee of Ginco, a Japan-based crypto wallet company. The hacker sent the employee a malicious link disguised as a GitHub-based recruitment test. When the employee copied the link to their personal GitHub account, their system was compromised.

In May, the compromised information was used to impersonate Ginco’s communication system. The hackers posed as DMM employees, manipulated a legitimate transaction request, and successfully executed a massive Bitcoin transfer.

The Fate of the Stolen Funds

The FBI reported that the stolen Bitcoin was transferred to wallets under the control of the TraderTraitor group. It was emphasized that the North Korean regime uses such illicit activities to circumvent economic sanctions and generate revenue.

The FBI announced its continued efforts, in collaboration with Japanese authorities and international partners, to expose and counter North Korea’s illegal crypto activities.

The DMM hack stands out as one of the largest crypto heists of 2024 but is just one of many incidents that occurred throughout the year. Stay vigilant against phishing scams!

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The post FBI and Japan Reveal Details of the $305M DMM Hack appeared first on Coin Engineer.