UK Crypto Exchange Lykke Hacked: $22 Million Stolen in Cyber Attack

• The UK’s cryptocurrency exchange, Lykke, has fallen victim to a major cyber attack.
• The exchange, which saw a cumulative volume of $2.5 million last month, had $22 million stolen according to on-chain detective SomaXBT.
• SomaXBT reported the breach early, but it took the exchange about two days to confirm and act upon it.

Read on to find out more about the Lykke crypto exchange hack and its implications for the industry.

Lykke Confirms Cyber Attack After Initial Reports

Approximately two days after initial reports surfaced, Lykke officially halted all withdrawal operations and confirmed the cyber attack. On June 6th, Lykke’s CEO Richard Olsen addressed customers via email, apologizing for the temporary suspension of services.

Initial Detection and Delayed Response

While SomaXBT was quick to identify and report the security breach, it took Lykke around 48 hours to acknowledge and respond to the attack. This delay has raised several questions regarding the exchange’s crisis management protocols and its ability to swiftly secure user funds.

Customer Assurance and Future Actions

In his email, Richard Olsen assured clients that all funds were secure despite the breach, highlighting Lykke’s strong capital reserves and diversified business model. However, the breach itself calls attention to the importance of robust security measures and quick response times in the volatile world of cryptocurrency.

Growing Trend of Crypto Exchange Hacks

This incident with Lykke is just one in a series of recent cyber attacks targeting crypto exchanges. For example, DMM Bitcoin had $320 million stolen from its platform on May 31st. The increasing frequency of these hacks highlights the urgent need for enhanced security measures across the industry.

Conclusion

The cyber attack on Lykke Exchange underscores the persistent security challenges faced by cryptocurrency exchanges. While Lykke has taken steps to assure its customers and secure the platform, the breach acts as a stark reminder of the vulnerabilities present in the sector. Going forward, stronger security measures and quicker crisis management responses will be crucial in safeguarding assets and maintaining trust in the burgeoning cryptocurrency market.