The breach, which occurred on September 11, targeted the platform’s hot wallets.
An attack on the Indonesian cryptocurrency exchange Indodax resulted in the theft of about $22 million worth of digital assets.
The breach, which occurred on September 11, targeted the platform’s hot wallets, according to a report by blockchain analytics firm SlowMist.
According to the SlowMist report, a number of tokens were taken, and the hackers quickly exchanged the stolen goods for Ethereum, TRON, Polygon, and Bitcoin.
It was also confirmed by the blockchain forensics company Cyvers that the funds had already been switched on-chain, complicating the recovery process.
Indodax Confirms Security Breach
Indodax responded to the attack with a post on its official X account acknowledging the situation.
In order to address the breach, the exchange said that its security team had discovered a “potential security issue” and was carrying out complete system maintenance.
Although the platform has temporarily stopped all activity, it has assured users that their money—both in fiat and cryptocurrency—is secure.
To date, Indodax has not disclosed the full scope of the damage or the manner in which the breach happened.
“Currently, we are conducting a complete maintenance to ensure the entire system is operating properly,” the platform wrote.
“During this maintenance process, the INDODAX web platform and application are temporarily inaccessible. But don’t worry, we can assure you that your balance remains 100% safe both in crypto and rupiah.”
Halo Member INDODAX,
— indodax (@indodax) September 11, 2024
Kami ingin menginformasikan bahwa team security kami menemukan potensi indikasi keamanan pada platform kami.
Saat ini, kami sedang melakukan pemeliharaan menyeluruh untuk memastikan seluruh sistem beroperasi dengan baik. Selama proses pemeliharaan ini,… pic.twitter.com/kYAc6ilERF
With more than 4.3 million verified users, the exchange—which was established in 2014 by Oscar Darmawan and William Sutanto—is among the biggest in Indonesia.
It is governed by rules issued by the Indonesian Ministry of Communication and Information Technology and the Commodity Futures Exchange Supervisory Board.
Indonesia Issues New Crypto Regulations
The Financial Services Authority (OJK), Indonesia’s financial services regulator, released new rules earlier this year. These regulations will take effect in January 2025.
These rules will give banks, insurance providers, and other financial industry players direction on how to take advantage of new technologies and pursue creative opportunities.
The regulations take into account how technology has affected different financial services and products as well as how businesses operate digitally.
The OJK is working closely with Bank Indonesia, the central bank of Indonesia, and Bappebti, the current crypto regulator, to ensure a smooth transition.
To create a thorough crypto policy, the OJK has been working with foreign partners in addition to its own domestic initiatives.
The organization has collaborated with financial regulators in Dubai, Singapore, and Malaysia to create a strong framework for regulating cryptocurrencies.
Additionally, it has written Memorandums of Understanding with the Virtual Asset Regulatory Authority in Dubai, Singapore’s Monetary Authority, and Malaysia’s Bank Negara.
Meanwhile, the Indonesian crypto market is rapidly growing.
In the first two months of 2024, over 19m people invested in crypto assets.
More recently, Binance declared that Tokocrypto, one of its subsidiaries, had obtained a Physical Crypto Asset Trader (PFAK) license from Bappebti, the commodity regulator in Indonesia.