FixedFloat Confirms $26M Crypto Exploit

FixedFloat experienced a fraudulent attack resulting in the loss of at least $26 million worth of Bitcoin and Ethereum.

On-chain data indicates that the decentralized cryptocurrency exchange FixedFloat has been used fraudulently to get Bitcoin and Ethereum valued at least $26 million.

A few hours after the hack was originally reported on X (previously Twitter), the exchange team acknowledged it. Initially, the team put its services in maintenance mode and blamed the large outflows on “minor technical problems.

On the exchange’s X page, some customers have claimed stalled transactions and lost cash since February 17. More than 1,700 Ether (ETH) worth about $5 million and more than 400 Bitcoin (BTC) worth approximately $21 million were depleted on February 18, according to on-chain data.

“We confirm that there was indeed a hack and theft of funds. We are not yet ready to make public comments on this matter, as we are working to eliminate all possible vulnerabilities, improve security, and investigate. Our service will be available again soon. We will provide details on this case a little later.”

Moreover, all pages of the exchange’s website are currently displaying an error message.

The manner in which the attack was executed is not evident. According to reports, the exchange team is looking into the security incident.Users do not need to register on FixedFloat, an automated cryptocurrency exchange, or undergo Know Your Customer (KYC) verifications.

Roughly 26 percent of its website traffic originates from US consumers, according to data from SEMrush. For Bitcoin transactions, the exchange interfaces with the Lightning Network one of the biggest issues facing cryptocurrency initiatives is on-chain cybersecurity. For example, bit-flip attack-capable drainers are available on scam-as-a-service marketplaces that target the Solana ecosystem.

Additionally, Chainalysis predicted that in 2023, ransomware payments would resume, focusing on infrastructure and prestigious organizations. A recent report claims that through supply chain attacks, criminals, ranging from lone people to massive syndicates made a record $1 billion last year.