Trading volume surges 260% despite hack, surprising crypto market analysts worldwide.
A major crypto trading platform, WOO X, has reported a suspected security breach. The platform might have lost more than $12 million worth of crypto assets. Blockchain security firm Cyvers Alerts first raised the alarm. According to Cyvers, the target of the attack was Bitcoin (BTC), Ethereum (ETH), BNB, and Arbitrum (ARB) networks.
The hack has affected nine user accounts to date. WOO X also assured that none of the affected accounts were company accounts and that only individual users were affected. In a bid to reduce additional risk, the platform has halted all withdrawals temporarily. The move will be in effect until the internal inquiry is over.
In an official statement, WOO X said that it has already reached out to the targeted users on their accounts. The exchange also assured that it will compensate for any illegitimate withdrawals fully. This action is supposed to calm down users and guard the confidence in the trading platform.
Initially, the loss was pegged at 12 million dollars. Subsequently, more in-depth analysis indicated that the stolen money may have been as high as $14 million in total. Certain transactions are already tracked down. To illustrate, Cyvers disclosed that a single dubious address on the Ethereum platform got 1 million USDT sent by WOO hot wallet. Then this money was exchanged for ETH and transferred again.
Five BTCB coins were exchanged on the BNB Chain and moved out of the wallets of WOO. These coins were exchanged for BNB tokens and afterwards were transferred to a new wallet address. According to blockchain specialists, the movement of such funds has become a priority to track. Cyvers and other security companies are tracking the stolen funds across several blockchains such as Bitcoin, Ethereum, Arbitrum, Tron, and BNB Chain.
To contain the situation, WOO X is collaborating with security experts. They also communicate with other crypto platforms in an attempt to freeze stolen funds in case possible. The exchange has so far been able to thwart various attempts at withdrawals on the affected accounts.
What is surprising is that the trading volume of WOO X increased following the news of the hack. CoinGecko reported that the trading volume increased by over 260% in the 24 hours following the breach. According to some market observers, the reaction of investors to the risk as well as the opportunity in such an occurrence is swift.
This is a suspected hack that points to larger issues in the crypto industry. The regulations under which many exchanges are still carried out are vague or poorly developed. In case of a breach, confusion may arise regarding the protection that is offered to customers. Crypto firms are not subjected to the same strict regulations as traditional banks when it comes to reporting an incident or compensating.
However, the fact that WOO X promises to reimburse all losses has been commended. Experts believe that this rapid reaction would be able to minimize the reputation damage suffered by the company. However, such an attack happened multiple times, which proves that the crypto world requires stricter security standards and rules.
At present, WOO X has expressed its apologies concerning the inconvenience that has been occasioned by the withdrawal freeze. The exchange adds that effort is being made to restore the services as soon as possible.
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