CoinEx Invites Hackers to Negotiate, Promises Bug Bounty Reward

Cryptocurrency exchange CoinEx, which recently suffered a breach, has called on the hacker to negotiate with the company while also promising a generous bounty reward if they decided to return the stolen assets.

The notorious North Korean-sponsored Lazarus Group was identified as the hackers behind the attack on CoinEx.

Let’s Dialogue, Says CoinEx to its Hackers

In an open letter on Sept. 15, CoinEx stated that the hack incident served as a lesson for the company and made the team more aware of the importance of ensuring the robust security of assets on the platform.

The letter, which was addressed to hackers, called for dialogue and negotiations with the actors responsible for the attack, noting that the stolen assets represented millions of customers who trust the crypto exchange.

“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.”

CoinEx also offered a “generous bug bounty” to the hackers if they returned the assets while also pledging to improve its security infrastructure. The firm further extended an invitation to the attackers to work with the company on the future upgrade of its security system.

As previously reported by CryptoPotato, the CoinEx hack happened on Sept. 12, with attackers draining around $55 million in assets from the platform’s hot wallets, according to blockchain security outfit SlowMist. The incident caused the crypto exchange to halt all deposits and withdrawals amid ongoing investigations.

Meanwhile, on-chain sleuth ZachXBT identified North Korean hackers Lazarus Group as the entity responsible for the attack.

An Estimated $70 Million Stolen From CoinEx

In a separate response update, CoinEx stated that while the company was still trying to calculate the extent of financial damage, current findings revealed that about $70 million was stolen from the platform, higher than previously reported. However, the crypto exchange stressed that the theft represented a small percentage of its total assets.

CoinEx did not state when services would resume but said that withdrawals would reopen in phases following stringent security checks. The firm also said that it is working on completing wallet upgrades next week while promising to reimburse affected users 100%.

“Currently, we focus on upgrading the wallet architecture, calculating losses, and freezing related suspicious addresses by coordinating with industry partners and peer exchanges. Regarding compensation plans for the stolen assets, we are now formulating options. The compensation will be provided per-coin, with details to follow in our official announcements later.”