Crypto Exchange FixedFloat Suffers $26M Security Breach

In an official communication, the Seychell-based crypto exchange FixedFloat suffered a malicious attack that impacted the loss of a substantial amount of funds. News concerning the hacking incident was disclosed by the renowned blockchain analytics firm BlockFence.

After assessing the damages caused by the malicious attack, the BlockFence team noted that the hackers escaped with 400 Bitcoin and 1,700 Ether, currently valued at $26 million. The probing team pointed out that the hackers had initially been making attempts to exploit the FixedFloat platform due to its distinguished features.

Hackers Drain $26M from FloatFixed

Compared to other crypto exchanges, the BlockFence team noted that the FixedFloat lacked adequate know-you-customers (KYC) and anti-money laundering (AML) measures. The BlockFence said the absence of customer verification features attracted the attention of hackers who desired to launch a malicious attack on the FixedFloat exchange.

In a subsequent report, the probing team discovered a Bitcoin address the hackers used to transfer the stolen funds to external wallets. Also, after analyzing the on-chain data, the BlockFence team noted that the bad actors engaged in a series of high-value transactions to channel the funds to their respective wallets.

The report shared by the BlockFence team concerning the FixedFloat hacking incident captivated the attention of multiple security analyst. A subsequent report from PeckShield revealed that the hackers transferred the stolen funds through an Ethereum mixer dubbed eXch. 

The PeckShield team observed that to conceal the movement of illicit funds and undermine the efforts of law enforcers, the hackers used crypto mixer wallets. Occasionally, crypto mixers are used by hackers to hide the source of stolen assets.

Rise of Crypto Crime

Moreover, the PeckShield team noted that a measurable amount of the stolen funds were channeled through HitBTC and CoinSpot trading platforms. Due to the complexity of the transaction, the PeckShield team described the suspicious wallet address as FixedFloat Drainer. 

Upon contacting the FixedFloat team to delve more about the hacking incident, the crypto exchange confirmed that the attack was conducted by external groups. A statement from the FixedFloat representative demonstrated that the hacking incident did not involve any of the employees. 

Arguably, the disgraced crypto exchange confessed that the hacking incident was an external attack that targeted a vulnerable system on the FixedFloat platform. The representative explained that the hackers gained unauthorized access to the FixedFloat platform through a vulnerable system.

Additionally, the executive blamed the FixedFloat team for failing to implement adequate security measures to shield the crypto exchange from external attacks. Shortly after the security breach, the FixedFloat team took corrective steps to address the matter. 

The troubled crypto exchange updated the FixedFloat community on the matter and activated the maintenance mode on the website. In the report, the FixedFloat team confirmed that the proposed maintenance aimed to prevent the attack from spreading to other functions offered by the crypto exchange. 

At this stage, the FixedFloat technical team will identify and fix system vulnerabilities on the platform. The technical team will prioritize strengthening the security system through advanced technologies.

FixedFloat Seeks to Strengthen Security Protocol Following Security Breach

According to the report, the crypto exchange confessed that the maintenance process will involve a thorough assessment of FixedFloat software and infrastructure to boost efficiency and system security. The ongoing maintenance aims to protect the customers’ funds from losses.

In the meantime, the FixedFloat team assured the customers that their assets were safe and secure. The crypto exchange confessed that hackers only accessed the FixedFloat services, not the customers’ assets. 

In the latter, the crypto exchange stated that the company does not offer crypto custodial services which have the primary target for the hackers. The FixedFloat team vowed to keep the users updated with the ongoing investigations concerning the hack. Additionally, the probing team pledged to fix all the vulnerabilities and integrate additional security protocols on the FixedFloat platform. 

On X, the FixedFloat team assured the customers that normalcy would resume soon. In the tweet, the crypto exchange confirmed that the stolen funds had minimal impact on customers’ funds. The X post indicated that the hackers only interfered with the firm’s internal operation.

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