Lykke Crypto Exchange Hack

On June 4, 2024, Lykke, a Switzerland-based centralized cryptocurrency exchange, experienced a significant security breach resulting in the theft of over $22 million in crypto assets from its wallets. The incident impacted both Lykke UK and Lykke Corp AG, prompting the platform to halt withdrawals the same day as a precautionary measure.

The breach was not publicly disclosed until June 9, when blockchain security researcher SomaXBT reported the loss, initially estimated at $19.5 million, and accused the exchange of attempting to conceal the incident.

Lykke officially acknowledged the hack on June 10 through a social media statement, confirming the total loss of $22 million. Despite the breach, the exchange assured users that their funds remained secure and would be covered by the company’s capital reserves. In response, Lykke launched a criminal investigation, identified the attacker’s IP addresses, and collaborated with cybersecurity experts to block and potentially recover the stolen assets. Before the formal announcement, user concerns began surfacing on June 8, with

Lykke attributed the disruption to “unscheduled full system maintenance” in its Discord communications. This incident underscores ongoing vulnerabilities in centralized exchange infrastructures and emphasizes the critical importance of transparent communication, rigorous security protocols, and proactive incident response measures in maintaining user trust.