FixedFloat Exchange Suffers Second Hack in Less than 2 Months, Loses Over $3M

FixedFloat, a fully automatic cryptocurrency exchange that uses Lightning Network to ensure faster transactions, has suffered another hack in less than two months. The situation has raised questions regarding the reliability of the platform among onlookers.

Crypto exchanges have been constantly targeted by hackers over the years, and in most cases getting away with substantial amounts of funds. The attack on FixedFloat underscores the difficulties exchanges face in protecting themselves against threats.

More than $3 million lost

The Seychelles-based exchange reported the incident earlier today on X, alerting its users of the breach which led to a loss of over $3 million in crypto funds. The incident was first reported by the security firm CertiK which pointed out that the perpetrators transferred Ether (ETH), and USDT to wallets on the Ethereum and Tron blockchain networks.

Unfortunately, this is not the first time that FixedFloat has been hacked. On February 16, the company reported a similar breach which was a result of a spotted weakness in its system. According to the announcement, the same attackers from before had taken advantage of a vulnerability in a third-party service that the platform uses, serving as a gateway for unauthorized access. Following the incident, the exchange quickly shut down its website citing “technical work.”

Users’ assets remain safe

Meanwhile, FixedFloat stressed that the financial loss affected only its services, assuring users that the company’s funds and user funds are intact.

“We would like to emphasize that financial losses affected only our service; hackers stole funds to ensure the liquidity of the service, that is, the company’s funds and user funds were not affected,” the statement reads.

FixedFloat has launched a comprehensive inquiry into the incident, but given the size and fragility of the case, details have been limited. In light of the possible ramifications for confidence and safety in cryptocurrency exchanges, security specialists and the crypto community are closely monitoring the state of things.

Because of this, there are concerns raised about the effectiveness of the corrective action steps implemented following the initial breach and the challenges exchanges face in defending themselves against advanced cyber threats because of the frequency of security breaches at FixedFloats.