UK’s Lykke Exchange Disables Trading Following Massive $22 Million Hack

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In a major upset to the crypto world, British crypto exchange Lykke has suspended trading services due to a possible hack attack that saw the loss of about $ 22 million. This event has aroused big security issues and proves that there are existing risks in digital currency exchanges. 

Details of the hack 

Lykke reported the case of “unauthorized access” to the platform when web investigator SomaXBT conducted the related investigation. This hack caused considerable exits of several digital assets such as Bitcoin, Ether, Litecoin, and Bitcoin Cash given by on-chain data. Taylor Monahan, a MetaMask developer and crypto defence analyst, was one of the early persons who pointed out the unusual transactions. 

The leakage was a few days after the first signs appeared that the company’s network had been infiltrated; in response to this incident, Lykke halted all trading to avert further losses. To hide the traces of the obtained ether, the stolen funds were immediately changed for DAI, a cryptocurrency constantly used by hackers for such purposes. 

Lykke’s response and reactions 

Lykke reacted fast to the hack episode that hit the company. Richard Olsen, CEO of Lykke, claimed that Client funds are secure, even while many have complained of no balance in their accounts. Olsen said: “Your money is protected because Lykke is a diversified company with adequate cash”. 

Lykke also through a tweet confirmed that both Lykke UK and Lykke Corp AG were under the attack on 4th June. The exchange is reported to have acted quickly by stopping several systems to prevent further damage, not forgetting the fact that it has closely reviewed and remediated the mentioned security issues. There has been an internal investigation into the attacker, and the authorities have launched a criminal case into the incident.

On the same note, to support their action, Lykke has hired an external cybersecurity firm to help them prevent the theft as well as recover the lost assets. Adding to that Olsen said, “Despite the fact that Lykke has adequate reserve capital and diverse investment products, it has a good financial security and the client’s money is safe and can be clawed back. ”

This is more so because the hack led to a trading halt, something that has disrupted and caused concern in the crypto ecosystem. Technically, Lykke strives to work on the problem; meanwhile, the exchange is shut down to prevent the situation. 

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