A well-known cryptocurrency exchange in the United Kingdom, Lykke, has recently ceased its trading activities following a security breach on June 4th, resulting in a reported loss of $22 million. The company revealed this information in its latest posts on the social media platform X.
Lykke UK and Lykke Corp AG experienced an attack on their infrastructure on June 4th, prompting the immediate shutdown of affected systems to minimize any potential damage. The security breaches have been thoroughly investigated and addressed.
Reports indicate that the attacker exploited private keys, leading to the shutdown of trading operations on June 6th due to an “unauthorized access” issue. This came shortly after the security breach was detected. In the previous month, the exchange saw a trading volume of up to $2.5 million.
Customers of Lykke are currently unable to access their assets, with many reporting emptied account balances, suggesting a breach in the exchange’s security. Half of the affected funds were in Bitcoin, with the remainder in Bitcoin Cash, Litecoin, and Ether. The exploiter quickly converted the Ether tokens into the stablecoin DAI and split the Bitcoin tokens among various wallets, a common tactic to obscure the transfer trail and launder funds.
Despite limited details provided by the platform, CEO Richard Olsen sent an email to customers on June 6th apologizing for the downtime. He reassured customers that their funds are safe and that the company maintains strong capital reserves. The platform’s website currently displays a maintenance message following the incident.
The platform claims to have identified the attacker’s IP addresses through internal investigations and has engaged a cybersecurity firm to block and recover assets. Trading operations remain suspended as a precautionary measure, with plans to reopen pending further notice.