Crypto Exchange, DragonEx Loses $7m To Hack

DragonEx, a singapore-based top 50 rated cryptocurrency exchange has been reported to have lost crypto assets valued at around $7m to a hacking attack.

The hack which took place on the 24th of March prompted the company to work on “Preliminary compensation plan” for customers affected by the attack.

“After tracking and investigation, DragonEx found that part of funds has flown into other exchanges. DragonEx has been working on retrieving back more assets and communicating with the leaders of those exchanges for more support,” an official said.

Refunds Plan

In the announcement following the loss, the exchange stated that negotiations on a compensation plan was in progress. It also stated that the missing assets will be refunded the affected customers in USDT credit or Dragon Token (DT), the internal currency of the exchange based on the customers’ choices.

Since the hack was confirmed, the exchange has been investing 100% of its trading fees income into paying back affected customers in direct proportion to the DT value they hold.

Is the Exchange Bankrupt?

dragonex hack

When asked if the exchange went bankrupt, the company took to its telegram handle to deny the suspicion by writing:

“DragonEx will take this lesson, upgrade the security level of the platform, cooperate with the third-party agency to do security supervision and audit, spare no effort to resume services after the Compensation Plan and Security Text are approved,”

Following the investigation initiated by the exchange, it was revealed that some of the stolen assets were transferred to exchanges prompting moves that resulted in recovering some of the stolen funds.

How Much Was Lost?

There has been no official figures stating how much the exchange lost in the hack but the Telegram post concerning the incident stated:

.It’s estimated that the value of the funds stolen is around 7 million $, After tracking and investigation, DragonEx found that part of funds has flown into other exchanges. DragonEx has been working on retrieving back more assets and communicating with the leaders of those exchanges for more supports.

Recovery Efforts

dragonexThe DragonEx management explained that it is collaborating with exchanges around the world and law enforcement in different jurisdictions to recover the stolen funds.

In order to get more assistance from more nodes, DragonEx has submitted the relevant materials to The EOSIO Core Arbitration Forum (ECAF) and found that until now, there has been about 450,000 EOS controlled by the hacker .

Lessons Learnt

Speaking on the lessons it has learnt from the security bridge, the company said it was upgrading its security and would welcome inputs from third parties in its quest to frorestall reoccurrence.

Meanwhile, DragonEx will take this lesson, upgrade the security level of the platform, cooperate with the third-party agency to do security supervision and audit, spare no effort to resume services after the Compensation Plan and Security Text are approved.

The team thanked the community for support, adding that it is confident that the challenges posed by the incident would be overcome.

Dare ShonubiDare Shonubi

Author: Dare Shonubi

Dáre Shonubi is a certified cryptocurrency expert and Blockchain journalist with an extensive experience in blockchain project marketing, media engagement, community management and cryptocurrency market analysis and research. An avid blockchain enthusiast with a view to support the blockchain innovation to optimum adoption and immeasurable development. Dare holds a diploma in the study of blockchain and cryptocurrency.

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