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FixedFloat Exchange Hit by Hackers, Loses $3M to Ethereum, Tron – Crypto News

Published

1 year ago

April 2, 2024

Dripp

According to a post on the X platform by FixedFloat, a Bitcoin Lightning-based exchange, the service experienced a security breach leading to unauthorized transactions and financial losses.

FixedFloat, a company providing exchange services of various cryptocurrencies, with the use of the Bitcoin Lightning network to increase the speed of transactions, reported the event, after noticing some of the suspicious activities where more than 3 million United States dollars were sent out of the exchange. This incident points out a troubling repeat of security issues for FixedFloat after a similar occurrence in the same year.

Security Breach Details

CertiK, which is a security firm, was the first to notice these transactions, stating that the funds were transferred in ether (ETH) and tether (USDT) to wallets on the Ethereum and Tron networks.

The transactions’ row pattern resembled the attack that FixedFloat had suffered on February 16, which inferred a potential weakness in the system or its related third-party services. The website of the exchange was shut down for “technical maintenance” in response to these situations, meaning that the users had no access and information for a long time.

Exchange’s Response and Measures

Upon the breach, FixedFloat came out with a note that recognized the attack and detailed the measures that were taken right at the spot and to avoid such in future. The organization stressed its dedication to protection of its infrastructure and the continuous improvement of the security against such attacks.

On April 1, we were again attacked by the attackers who were behind the February 16 hack. The attackers did not stop there and continued to use various methods to try to hack our service again. Thanks to the enormous work done to improve the security of our infrastructure, we…

— FixedFloat⚡️ (@FixedFloat) April 2, 2024

FixedFloat informed its clients that the stolen funds constituted company reserves and the assets held or transacted via the service remained safe as FixedFloat is a non-custodial service.

Investigation and Industry Reaction

The occurrence has sparked a thorough investigation by FixedFloat, with information not being very forthcoming due to the delicate nature and magnitude of the probe. Given the potential consequences for trust as well as security in crypto exchanges, the crypto community and security experts are closely observing the situation.

The recurrent nature of the security breaches at FixedFloats as a result brings up doubts regarding the adequacy of the corrective action measures taken after the first breach and the difficulties exchanges encounter in protecting themselves from sophisticated cyber threats.