- FixedFloat, an automated cryptocurrency exchange, was hacked resulting in the theft of 409 Bitcoin worth $21.3 million and 1,700 ETH worth $4.9 million.
- The hack was attributed to infrastructure flaws rather than an internal attack. FixedFloat is investigating, fixing vulnerabilities, and will release a full report.
- FixedFloat stated they will fulfill obligations to clients and that only user funds were impacted. The exchange aims to compensate affected users, be transparent, and strengthen security.
The automated DeFi exchange FixedFloat was recently targeted in a major hacking incident resulting in significant losses of cryptocurrency funds.
Details of the Hack
On February 19th, 2024, the blockchain cybersecurity Twitter account @officer_cia reported that FixedFloat had been hacked. According to the initial report, the breach resulted in the theft of 409 Bitcoin valued at approximately $21.3 million and 1,700 ETH worth around $4.9 million.
Shortly after, FixedFloat confirmed on Twitter that it had indeed suffered a security breach. In response to questions, the exchange stated that only user funds were affected and that FixedFloat does not actually hold or store user funds as it is a non-custodial platform.
FixedFloat’s Response
After the incident, FixedFloat did not immediately publicize the hack. Instead, the team prioritized investigating the attack, fixing vulnerabilities, and strengthening overall security before making any public statements.
According to FixedFloat, the breach was attributed to flaws and insufficient protection in their infrastructure rather than an internal attack. They are currently unable to share more details due to an ongoing investigation but promise to release a full report once it is completed.
The exchange stated they still have outstanding payment obligations of approximately 30 orders to users that will be fulfilled once services resume and they are confident in the safety and security of the platform. FixedFloat guaranteed they will fulfill all obligations to clients and reiterated that only user funds were impacted.
How FixedFloat’s Exchange Works
FixedFloat operates as a fully automated, non-custodial cryptocurrency exchange that allows for anonymous trading without requiring any user information or KYC details.
As a platform built on Bitcoin‘s Layer 2 Lightning Network, FixedFloat offers users accelerated trading speeds and lower transaction fees. At the end of 2022, the exchange reported facilitating over 1.5 million trades between more than 100,000 users and currently supports trading between 67 different cryptocurrencies.
Moving Forward After the Hack
While the recent breach represents a setback, FixedFloat is committed to compensating any affected users, being transparent about what happened, and bolstering security to prevent any similar incidents going forward. The exchange will need to restore confidence and continue building on its previous growth after emerging from this hacking event.
