Leading Japanese crypto exchange Liquid Global has been hacked and $97 million worth of cryptocurrency has been stolen. The incident was reported in a tweet by Liquid Global on Thursday. Now they are moving digital assets to secure cold wallets from warm wallets.
A blockchain analytics company, Elliptic has estimated that over $97 million worth of crypto in Ethereum, Bitcoin, XRP and stablecoins has been stolen.
Cryptocurrency wallets are divided into two types: cold wallets and hot/warm wallets. Warm wallets are more vulnerable to theft because they are connected to the internet and let users to receive, send, and store tokens. Offline mode is used by the cold wallet.
Liquid Global has temporarily halted deposits and withdrawals in the exchange until the incident is investigated. According to a blog post by the company, the hacker targeted a Multi-Party Computation wallet (MPC), which is utilised by a Singapore subsidiary QUOINE PTE for warehousing and maintenance of cryptographic assets.
Liquid Global warned its users by posting series of tweets.
The recent update is pinned on the official twitter handle of Liquid Global which confirms that the exchange will soon resume its withdrawal and deposit.
MPC is a sophisticated cryptographic approach in which a group of parties generates the private key that controls funds collaboratively, with none of the parties being able to view the pieces calculated by others.
The Japanese exchange, on the other hand, did not explain how its security had been compromised. Liquid Global stated that it is working with other exchanges to trace funds to freeze and recover cash.
It also promised to do everything possible to alleviate the problem and restore full service as quickly as feasible. In the field of Decentralised Finance, or DeFi, this is the second large crypto robbery revealed.
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