CoinEx Hit by Hack Resulting in Significant Loss of Cryptocurrency Assets
Key Takeaways
- CoinEx, a prominent global cryptocurrency exchange, recently experienced a cybersecurity breach resulting in the loss of digital assets due to compromised hot wallets.
- Blockchain security firm PeckShield estimates the losses to include $19 million in Ethereum (ETH), $11.5 million in Tron (TRON), and approximately $295,000 in Polygon (MATIC).
- CoinEx assures users that all affected parties will receive full compensation for their losses.
- In response, CoinEx has enhanced security by transferring $72 million worth of assets to more secure cold wallets.
WEEX Crypto News, 19 January 2026
Detailed Account of the CoinEx Hack
The cryptocurrency landscape was shaken when CoinEx, a major player in the crypto exchange world, disclosed a significant security breach. This incident involved the hacking of CoinEx’s hot wallets, leading to a substantial loss of digital assets. The exchange’s security vulnerabilities were exposed, raising concerns across the crypto community as to the robustness of online trading platforms.
The details of the attack reveal how cybercriminals exploited weaknesses in CoinEx’s hot wallet infrastructure. Hot wallets, being internet-connected, are generally more susceptible to attacks compared to cold wallets, which are kept offline. This breach highlights the continual risk that online platforms face from increasingly sophisticated cyber intrusions targeting vulnerabilities to siphon off assets.
Estimated Financial Impact
According to security insights from PeckShield, a reputable blockchain security firm, the breach led to an estimated loss of $53 million. Specifically, the firm reports losses of about $19 million in Ethereum (ETH), $11.5 million in Tron (TRON), and $295,000 in Polygon (MATIC). These figures underline the scale of the situation, showcasing how a single breach can have far-reaching financial ramifications.
In response, CoinEx has assured its user base that all affected parties will be fully compensated. This reassurance serves to maintain user confidence and asserts the company’s commitment to safeguarding its client’s interests in this difficult period.
Measures and Reactions
To mitigate further risks and secure remaining assets, CoinEx has redistributed approximately $72 million worth of digital currencies from compromised hot wallets to cold wallets, significantly reducing their online exposure and bolstering protection against potential follow-up attacks.
Additionally, CoinEx has engaged in collaborations with other exchanges to track the movement of the stolen assets. This cooperative approach aims to prevent the hackers from converting their illicit gains into fiat or other cryptocurrencies, thereby hindering their ability to capitalize on the stolen assets.
Broader Implications for the Crypto Industry
The CoinEx hack serves as a stern reminder to the entire cryptocurrency ecosystem of the potential dangers lurking within the digital trading environment. With cryptocurrencies gaining widespread interest, security remains paramount for both individual and institutional investors. This event underscores the need for exchanges to continuously evaluate, update, and strengthen their security protocols to protect user assets effectively.
This breach not only puts into perspective the ongoing threat posed by cyber criminals but also acts as a catalyst for exchanges to enhance their security frameworks proactively. It is essential for the industry to devise more robust strategies to protect itself against potential threats and safeguard the assets of their users.
Positive Steps Forward for CoinEx
Despite this setback, CoinEx’s commitment to compensating its users and enhancing security measures reflects positively on its brand. By taking responsibility and providing assurance of compensation, CoinEx has taken an important step towards maintaining trust with its user community. The adoption of more secure, cold wallet storage solutions signifies CoinEx’s dedication to creating a more secure environment for its users in the future.
Join CoinEx and explore cryptocurrency trading with enhanced security features: [Sign up here](https://www.weex.com/register?vipCode=vrmi).
FAQ
What security measures has CoinEx introduced following the hack?
CoinEx has taken significant steps to secure its platform by transferring $72 million worth of assets to cold wallets. These wallets are offline and therefore offer enhanced security against potential online attacks. Additionally, the exchange is actively cooperating with other platforms to track and mitigate the movement of stolen assets.
How is CoinEx compensating affected users?
CoinEx has assured full compensation for all affected users. This commitment signifies the exchange’s responsibility towards its clients, ensuring that users will not suffer financial losses as a result of this breach.
Which cryptocurrencies were primarily affected?
The currencies most affected by the hack include Ethereum (ETH), Tron (TRON), and Polygon (MATIC), with losses estimated at $19 million, $11.5 million, and $295,000 respectively, as reported by the blockchain security firm PeckShield.
What lessons does this incident teach the crypto industry?
The CoinEx breach emphasizes the importance of robust security measures. It serves as a crucial reminder for all crypto exchanges to evaluate their security protocols continually and to adopt more secure storage methods to avoid similar incidents.
Why are cold wallets considered more secure than hot wallets?
Cold wallets are not connected to the internet, which makes them far less susceptible to hacking attempts compared to hot wallets. By storing digital assets offline, these wallets provide a higher level of security and are recommended for safeguarding large amounts of cryptocurrency.
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Debunking the AI Doomsday Myth: Why Establishment Inertia and the Software Wasteland Will Save Us
Editor's Note: Citrini7's cyberpunk-themed AI doomsday prophecy has sparked widespread discussion across the internet. However, this article presents a more pragmatic counter perspective. If Citrini envisions a digital tsunami instantly engulfing civilization, this author sees the resilient resistance of the human bureaucratic system, the profoundly flawed existing software ecosystem, and the long-overlooked cornerstone of heavy industry. This is a frontal clash between Silicon Valley fantasy and the iron law of reality, reminding us that the singularity may come, but it will never happen overnight.
The following is the original content:
Renowned market commentator Citrini7 recently published a captivating and widely circulated AI doomsday novel. While he acknowledges that the probability of some scenes occurring is extremely low, as someone who has witnessed multiple economic collapse prophecies, I want to challenge his views and present a more deterministic and optimistic future.
In 2007, people thought that against the backdrop of "peak oil," the United States' geopolitical status had come to an end; in 2008, they believed the dollar system was on the brink of collapse; in 2014, everyone thought AMD and NVIDIA were done for. Then ChatGPT emerged, and people thought Google was toast... Yet every time, existing institutions with deep-rooted inertia have proven to be far more resilient than onlookers imagined.
When Citrini talks about the fear of institutional turnover and rapid workforce displacement, he writes, "Even in fields we think rely on interpersonal relationships, cracks are showing. Take the real estate industry, where buyers have tolerated 5%-6% commissions for decades due to the information asymmetry between brokers and consumers..."
Seeing this, I couldn't help but chuckle. People have been proclaiming the "death of real estate agents" for 20 years now! This hardly requires any superintelligence; with Zillow, Redfin, or Opendoor, it's enough. But this example precisely proves the opposite of Citrini's view: although this workforce has long been deemed obsolete in the eyes of most, due to market inertia and regulatory capture, real estate agents' vitality is more tenacious than anyone's expectations a decade ago.
A few months ago, I just bought a house. The transaction process mandated that we hire a real estate agent, with lofty justifications. My buyer's agent made about $50,000 in this transaction, while his actual work — filling out forms and coordinating between multiple parties — amounted to no more than 10 hours, something I could have easily handled myself. The market will eventually move towards efficiency, providing fair pricing for labor, but this will be a long process.
I deeply understand the ways of inertia and change management: I once founded and sold a company whose core business was driving insurance brokerages from "manual service" to "software-driven." The iron rule I learned is: human societies in the real world are extremely complex, and things always take longer than you imagine — even when you account for this rule. This doesn't mean that the world won't undergo drastic changes, but rather that change will be more gradual, allowing us time to respond and adapt.
Recently, the software sector has seen a downturn as investors worry about the lack of moats in the backend systems of companies like Monday, Salesforce, Asana, making them easily replicable. Citrini and others believe that AI programming heralds the end of SaaS companies: one, products become homogenized, with zero profits, and two, jobs disappear.
But everyone overlooks one thing: the current state of these software products is simply terrible.
I'm qualified to say this because I've spent hundreds of thousands of dollars on Salesforce and Monday. Indeed, AI can enable competitors to replicate these products, but more importantly, AI can enable competitors to build better products. Stock price declines are not surprising: an industry relying on long-term lock-ins, lacking competitiveness, and filled with low-quality legacy incumbents is finally facing competition again.
From a broader perspective, almost all existing software is garbage, which is an undeniable fact. Every tool I've paid for is riddled with bugs; some software is so bad that I can't even pay for it (I've been unable to use Citibank's online transfer for the past three years); most web apps can't even get mobile and desktop responsiveness right; not a single product can fully deliver what you want. Silicon Valley darlings like Stripe and Linear only garner massive followings because they are not as disgustingly unusable as their competitors. If you ask a seasoned engineer, "Show me a truly perfect piece of software," all you'll get is prolonged silence and blank stares.
Here lies a profound truth: even as we approach a "software singularity," the human demand for software labor is nearly infinite. It's well known that the final few percentage points of perfection often require the most work. By this standard, almost every software product has at least a 100x improvement in complexity and features before reaching demand saturation.
I believe that most commentators who claim that the software industry is on the brink of extinction lack an intuitive understanding of software development. The software industry has been around for 50 years, and despite tremendous progress, it is always in a state of "not enough." As a programmer in 2020, my productivity matches that of hundreds of people in 1970, which is incredibly impressive leverage. However, there is still significant room for improvement. People underestimate the "Jevons Paradox": Efficiency improvements often lead to explosive growth in overall demand.
This does not mean that software engineering is an invincible job, but the industry's ability to absorb labor and its inertia far exceed imagination. The saturation process will be very slow, giving us enough time to adapt.
Of course, labor reallocation is inevitable, such as in the driving sector. As Citrini pointed out, many white-collar jobs will experience disruptions. For positions like real estate brokers that have long lost tangible value and rely solely on momentum for income, AI may be the final straw.
But our lifesaver lies in the fact that the United States has almost infinite potential and demand for reindustrialization. You may have heard of "reshoring," but it goes far beyond that. We have essentially lost the ability to manufacture the core building blocks of modern life: batteries, motors, small-scale semiconductors—the entire electricity supply chain is almost entirely dependent on overseas sources. What if there is a military conflict? What's even worse, did you know that China produces 90% of the world's synthetic ammonia? Once the supply is cut off, we can't even produce fertilizer and will face famine.
As long as you look to the physical world, you will find endless job opportunities that will benefit the country, create employment, and build essential infrastructure, all of which can receive bipartisan political support.
We have seen the economic and political winds shifting in this direction—discussions on reshoring, deep tech, and "American vitality." My prediction is that when AI impacts the white-collar sector, the path of least political resistance will be to fund large-scale reindustrialization, absorbing labor through a "giant employment project." Fortunately, the physical world does not have a "singularity"; it is constrained by friction.
We will rebuild bridges and roads. People will find that seeing tangible labor results is more fulfilling than spinning in the digital abstract world. The Salesforce senior product manager who lost a $180,000 salary may find a new job at the "California Seawater Desalination Plant" to end the 25-year drought. These facilities not only need to be built but also pursued with excellence and require long-term maintenance. As long as we are willing, the "Jevons Paradox" also applies to the physical world.
The goal of large-scale industrial engineering is abundance. The United States will once again achieve self-sufficiency, enabling large-scale, low-cost production. Moving beyond material scarcity is crucial: in the long run, if we do indeed lose a significant portion of white-collar jobs to AI, we must be able to maintain a high quality of life for the public. And as AI drives profit margins to zero, consumer goods will become extremely affordable, automatically fulfilling this objective.
My view is that different sectors of the economy will "take off" at different speeds, and the transformation in almost all areas will be slower than Citrini anticipates. To be clear, I am extremely bullish on AI and foresee a day when my own labor will be obsolete. But this will take time, and time gives us the opportunity to devise sound strategies.
At this point, preventing the kind of market collapse Citrini imagines is actually not difficult. The U.S. government's performance during the pandemic has demonstrated its proactive and decisive crisis response. If necessary, massive stimulus policies will quickly intervene. Although I am somewhat displeased by its inefficiency, that is not the focus. The focus is on safeguarding material prosperity in people's lives—a universal well-being that gives legitimacy to a nation and upholds the social contract, rather than stubbornly adhering to past accounting metrics or economic dogma.
If we can maintain sharpness and responsiveness in this slow but sure technological transformation, we will eventually emerge unscathed.
Source: Original Post Link

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