WOO X trading platform has been hacked with 9 users lost money

[Oshosondy]

They said withdrawal have been temporarily stopped but which might be right because the amount stolen was $14 million which is not much compared to other exchanges that were hacked before.

Just 9 users were affected and $14 million stolen, that is huge. Why are people keeping so huge amount on exchanges.

https://x.com/_WOO_X/status/1948403834406977748?t=3nqNdDWc6Pz3KasXADctjg&s=19

Not your key not your coin. It is that simple.

[Upgrade00]

There's so much to unpack here. They initially say user funds were not affected and then went on to say the incident affected 9 user accounts. They haven't mentioned a hack yet which will normally affect their hots or cold wallet generally, so it's possible that this was initiated internally by a staff.

It baffles me how 9 individuals could hold $14 million in crypto on a centralized exchange, that's an average of $1.5 million held my each and is not an amount you want to leave out of your custody.

[Hazink]

Just 9 users, $14 million lost, and not even all their funds in that exchange. According to the statement, some of the withdrawals were blocked. Assuming all went through, how much could we have been talking about here? That amount stolen is higher than the exchange's 24-hour average trading volume.

I don’t know how much they have in reserve, but that statement they made that all affected users will be covered is just a damage control statement, if you ask me. People take a whole lot of risk to leave this kind of money in exchanges. What for, if I may ask, since they are not instantly trading it?

The main purpose why an exchange is created is for trading from one pair to the other, converting to fiat or stablecoin, etc., but how some consider an exchange to be the safest place to save their wealth still surprises me.

[Wiwo]

There's so much to unpack here. They initially say user funds were not affected and then went on to say the incident affected 9 user accounts. They haven't mentioned a hack yet which will normally affect their hots or cold wallet generally, so it's possible that this was initiated internally by a staff.

It baffles me how 9 individuals could hold $14 million in crypto on a centralized exchange, that's an average of $1.5 million held my each and is not an amount you want to leave out of your custody.

There is basically two factors that is responsible for this user accounts hacks the one that is mostly suspected to be responsible for this us the insiders stunts in this hack incident, the other being possibly traced to the users themselves.

For the fact that 9 accounts holding such amount in a centralized custody makes them a special target of any kind, any way, we be looking out foe more details on this the case.

This is a special case as no hot wallet was mentioned to have been compromised.

[BitMaxz]

Just 9 users were affected and $14 million stolen, that is huge. Why are people keeping so huge amount on exchanges.

Well, I guess having a big amount has some advantages when trading, but if I were one of these people, I wouldn't deposit such a big amount to an unknown exchange like WOO. It's my first time hearing this exchange, but at least it is listed on CoinGecko at rank #74 with some details according to the CoinGecko penetration test under cyber security fails. So why would I trust an exchange that didn't pass cybersecurity and penetration tests?

It is way safer to use a known exchange in the top 10 in CMC and CoinGecko and diversify your funds on 2 to 3 exchanges; at least you don't put all your funds in one basket.

We know, "Not your key, not your coin. It is that simple." but there are no platforms yet where you can trade with your own wallet that you fully control.

[Oshosondy]

It is way safer to use a known exchange in the top 10 in CMC and CoinGecko and diversify your funds on 2 to 3 exchanges; at least you don't put all your funds in one basket.

I have 5 active exchanges right now and I divided the coins there. Just only my trading funds are there, the remaining are on my noncustodial wallets. They are not also one but I have more than one noncustodial wallet. I prefer to also diversify.

If I want to go for 2.5x leverage, I will make it 5x leverage. If I supposed to have $100 each on the exchanges, I have $50 instead which makes it 5x leverage and not 2.5x. I mean for bitcoin trading in this regard. I use 3 exchanges for grid trading, the whole 5 are too much and it will become confusing unless the other two are for special purposes.

[Darker45]

So, that makes it 4 within the month alone, right? There was BigONE with $27 million in stolen funds, CoinDCX with $44 million, and then WOO X with $14 million. I've also read about the exploit on GMX with $42 million.

It seems hackers have scored well this month--3 from centralized exchanges and 1 from what's considered decentralized.

I hope the funds stolen are from traders and not just from those who are lazy or confident enough to keep funds in exchanges.

[Z-tight]

I hope the funds stolen are from traders and not just from those who are lazy or confident enough to keep funds in exchanges.

Why? Nobody should store their funds in an exchange, but i can understand why traders do it, as for non-traders, i really cannot, when there are a lot of self custodial wallets out there to use. I am not really concerned about the kind of people who lost funds, i just hope the learn a lesson from this.

$14m from 9 users is a crazy stat, i don't know what people think. Centralized exchanges hold a huge amount of money, they ought to know that they would constantly be under attack from hackers, they should be investing more money into security of funds and data too.

[Bitcoin_Arena]

So, that makes it 4 within the month alone, right? There was BigONE with $27 million in stolen funds, CoinDCX with $44 million, and then WOO X with $14 million. I've also read about the exploit on GMX with $42 million.

It seems hackers have scored well this month--3 from centralized exchanges and 1 from what's considered decentralized.

I hope the funds stolen are from traders and not just from those who are lazy or confident enough to keep funds in exchanges.

Have you also noticed that whenever Bitcoin makes news with new all-time highs or whenever the market explodes into an uptrend, such cases of exchange hacks become more frequent. Perfect timing right? Or just pre-planned insider jobs?

It baffles me how 9 individuals could hold $14 million in crypto on a centralized exchange, that's an average of $1.5 million held my each and is not an amount you want to leave out of your custody.

Probably whales

[Darker45]

I hope the funds stolen are from traders and not just from those who are lazy or confident enough to keep funds in exchanges.

Why? Nobody should store their funds in an exchange, but i can understand why traders do it, as for non-traders, i really cannot, when there are a lot of self custodial wallets out there to use. I am not really concerned about the kind of people who lost funds, i just hope the learn a lesson from this.

It's still concerning, especially if the victims are active traders who are left with no choice but to trust centralized services. They're probably aware of the risks, but they have to put it aside for the sake of profit. That's what they do.

If they're not traders, then this is a costly reminder. But it seems WOO X commits to fully refunding them.

~snip~

Have you also noticed that whenever Bitcoin makes news with new all-time highs or whenever the market explodes into an uptrend, such cases of exchange hacks become more frequent. Perfect timing right? Or just pre-planned insider jobs?

I haven't noticed that pattern, but with all the hacks happening all the time, some of them must be pre-planned inside jobs.

[The Cryptovator]

I saw the notification on the Cointelegraph Telegram news channel about this hack. To be honest I heard first time after this hack about this exchange. So assume this isn't a very big exchange. But the amount stolen would be big for small exchanges. That's one of the important reasons why we shouldn't trust exchanges about storing funds there. Anything could happen with the exchange, including freezing your account as well. So we have to take a lesson from such issues about how we should secure our funds.

Just 9 users were affected and $14 million stolen, that is huge. Why are people keeping so huge amount on exchanges.

Not your key not your coin. It is that simple.

I saw user funds will not be affected according to the exchange. Though this is good for the users for now, they have to learn from here. Pretty sure these 9 users were whales, and wondering how whales store such a big amount on the exchange. This is really unrealistic to me when I see big investors do something stupid.

[Z-tight]

Have you also noticed that whenever Bitcoin makes news with new all-time highs or whenever the market explodes into an uptrend, such cases of exchange hacks become more frequent. Perfect timing right? Or just pre-planned insider jobs?

I don't think i have noticed this pattern or maybe i have just not paid attention to it. I believe exchanges are always targets of hackers, irrespective of any time or season, that is because they hold a huge amount in customer funds. However, i will surely not rule out inside jobs in many of the exchange hacks that have happened in the industry.

But it seems WOO X commits to fully refunding them.

Yeah, those nine victims are lucky. Hope they move it into self custody whenever they receive it.

[Oshosondy]

Have you also noticed that whenever Bitcoin makes news with new all-time highs or whenever the market explodes into an uptrend, such cases of exchange hacks become more frequent. Perfect timing right? Or just pre-planned insider jobs?

I don't think i have noticed this pattern or maybe i have just not paid attention to it. I believe exchanges are always targets of hackers, irrespective of any time or season, that is because they hold a huge amount in customer funds. However, i will surely not rule out inside jobs in many of the exchange hacks that have happened in the industry.

I did not noticed, but I think in 2022, there are still exchanges that were hacked, and it continues also when bitcoin price started to increase which was at the beginning of 2023 and till now. That is all I noticed about exchanges and also DeFi platforms that are often got exploited.

[Bitcoin_Arena]

I did not noticed, but I think in 2022, there are still exchanges that were hacked, and it continues also when bitcoin price started to increase which was at the beginning of 2023 and till now. That is all I noticed about exchanges and also DeFi platforms that are often got exploited.

There used to be a website (exchange graveyard something) that used to keep track of collapsing exchanges, exit scams and hacks. I am not sure if they still report every incident like they used to do, but the hack incidents were rampant during the bull run and immediately after the bull runs (I believe some exchanges just give hacks as an excuse to exit scam)

I am surprised they still exist because it appears as though at one point they had stopped reporting - https://www.cryptowisser.com/exchange-graveyard