DragonEx Crypto Exchange Hack Highlights the Importance of Using Reputable Platforms

Avatar Cole Petersen 9 months ago

The crypto industry has once again bore witness to an exchange being hacked by nefarious actors, with the latest exchange to fall victim being the Singapore-based DragonEx, which announced today that an undisclosed amount of multiple digital currencies have been stolen.

The latest hack is now highlighting the importance of cryptocurrency traders and investors utilizing safe and reputable cryptocurrency platforms that heavily utilize cold storage in order to hedge against the on-going risk of being hacked.

Another Day, Another Crypto Exchange Falls Victim to Hackers 

Earlier today, the exchange notified users in its Telegram channel that user’s crypto assets had been stolen and transferred out of the platform on this past Sunday, and that the exchange had already notified authorities in multiple countries about the cybercrime.

“On March 24th, DragonEx has encountered attacks from hackers, our users’ crypto assets and Platform crypto assets were transferred and stolen… Several judicial administrations were informed about this cybercrime,” they explained in a telegram notification on their official channel.

In the time since the announcement was made, the exchange’s Twitter account was temporarily restricted by Twitter due to a suspicious amount of activity, and there have been no tweets made since March 22nd.

Importantly, the exchange also noted in its Telegram message that they have retrieved a portion of the stolen assets already, and that they will update users on the status of their recovery efforts next week.

“Part of the assets were retrieved back, and we will do our best to retrieve back the rest of the stolen assets… All platform services will be closed and the…assets loss recovery situation will be announced in a week,” they said, further noting that they will “take responsibility no matter what.”

DragonEX Hack Highlights Importance of Using Reputable Exchanges 

Prior to the latest DragonEX hack, the crypto industry has been caught in the throes of the QuadrigaCX imbroglio that has captivated the industry due to the unusual circumstances surrounding it.

Nevertheless, both of these situations, as well as notable exchange hacks in years past, truly highlight the importance of investing in crypto on exchanges that utilize a multitude of security mechanisms to secure user’s assets.

Joseph Young, a popular figure within the cryptocurrency industry, was one of many individuals who discussed the importance of using secure exchanges, noting that platforms must utilize better cold storage systems.

“A crypto exchange in Singapore was hacked. Hacks/scandals deteriorate the public image of the crypto market, not good for the industry. Better cold storage systems have to be in place. Kudos to exchanges that prioritize security: Kraken, Binance, Coinbase, Gemini, others,” he said.

When DragonEx releases more information regarding their recovery efforts next week, the industry will likely figure out whether or not investors on the platform will be able to have their assets recovered or reimbursed.

Featured image from Shutterstock.
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