Indodax Suffers Major Hack

Indonesian cryptocurrency exchange Indodax has been the victim of a significant hack, with attackers making off with approximately $22 million in digital assets.

The breach, which occurred on September 11, specifically targeted the platform's hot wallets, according to a report by blockchain analytics firm SlowMist.

Details of the Breach

The SlowMist report revealed that various tokens were stolen during the breach. The hackers quickly converted these assets into Ethereum, TRON, Polygon, and Bitcoin.

The blockchain forensics firm Cyvers also confirmed that the stolen funds had already been swapped on-chain, complicating recovery efforts.

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 complete 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.

"Currently, we are conducting 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 in crypto and rupiah."

A Look at Indodax

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 financial industry entities on how to leverage new technologies and explore innovative possibilities.

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 engaged 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.

A Booming Crypto Market

Meanwhile, the Indonesian crypto market is rapidly growing. In the first two months of 2024, over 19 million people invested in crypto assets.

More recently, Binance announced that its subsidiary, Tokocrypto, secured a Physical Crypto Asset Trader (PFAK) license from Indonesia's commodity regulator, Bappebti.