Indonesian cryptocurrency exchange Indodax has fallen victim to a hack, with attackers making off with approximately $22 million in digital assets.
The breach, which occurred on September 11, targeted the platform’s hot wallets, according to a report by blockchain analytics firm SlowMist.
SlowMist report revealed that a variety of tokens were stolen, with the hackers quickly converting the assets into Ethereum, TRON, Polygon, and Bitcoin.
The blockchain forensics firm Cyvers also confirmed that the stolen funds had already been swapped on-chain, making recovery efforts more difficult.
Indodax Confirms Security Breach
In response to the attack, Indodax acknowledged the situation in a post on its official X account.
The exchange stated that its security team had identified a “potential security issue” and was performing full system maintenance to address the breach.
The platform has temporarily suspended all operations but reassured its users that their funds, both in crypto and fiat currency, are safe.
Indodax has not yet provided detailed information on how the breach occurred or the full extent of the damage.
“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.”
The exchange, founded in 2014 by Oscar Darmawan and William Sutanto, is one of Indonesia’s largest, with over 4.3 million verified users.
It operates under regulations from the Commodity Futures Exchange Supervisory Board and the Ministry of Communication and Information Technology of Indonesia.
Indonesia Issues New Crypto Regulations
Earlier this year, Indonesia’s financial services regulator, the Financial Services Authority (OJK), issued new regulations that will come into effect in January 2025.
These regulations will provide guidance to banks, insurance companies, and other entities in the financial industry on how to leverage new technologies and explore innovative possibilities.
The rules acknowledge the impact of technological advancements on various financial products and services, as well as the digital operations of companies.
To facilitate a smooth transition, the OJK is collaborating closely with the current crypto regulator, Bappebti, and the central bank of Indonesia, Bank Indonesia.
In addition to domestic efforts, the OJK has been engaging in international collaborations to establish a comprehensive crypto policy.
The agency has forged partnerships with financial authorities from Malaysia, Singapore, and Dubai to develop a robust framework for crypto regulation.
It has also drafted Memorandums of Understanding with Malaysia’s Bank Negara, Singapore’s Monetary Authority, and Dubai’s Virtual Asset Regulatory Authority.
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 has announced that its subsidiary, Tokocrypto, secured a Physical Crypto Asset Trader (PFAK) license from Indonesia’s commodity regulator, Bappebti.
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