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Crypto Exchange AscendEX Suspends Services After $77 Million Hack

Cryptocurrency exchange AscendEX says it will cover its users' losses from the estimated $77 million hack.

Cryptocurrency exchange AscendEX has temporarily disabled deposits and withdrawals after discovering a hack Saturday night that transferred an estimated $77 million worth of tokens out of the exchange's hot wallets.

AscendEX did not disclose the value of tokens stolen by a hacker, but data from Etherscan estimated the loss from transfer of ERC-20, Binance Smart Chain and Polygon tokens at about $77 million, according to a BeInCrypto report.

The estimated transfer losses included about $60 million in ERC-20 tokens, $9.2 million in Binance tokens and $8.5 million worth of Polygon. AscendEX said it will completely cover any user's loses from the hack.

The cryptocurrency exchange said that its cold wallets were not affected by the hack, according to a Saturday company statement.

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Hot wallets are cryptocurrency wallets connected to the internet that are linked to a private key and allow cryptocurrency owners to receive and send tokens. A cold wallet, or offline wallet, is a cryptocurrency wallet that is not connected to the internet and is more difficult to compromise.

The AscendEX hack is the second crypto exchange hack in the last week. Hackers on Dec. 5 transferred about $196 million of tokens from crypto exchange Bitmart after stealing a private key that opened two hot wallets, the company's CEO Sheldon Xia tweeted.

The crypto hackers transferred $100 million worth of cryptocurrencies on the Ethereum blockchain and $96 million on Binance, according to a Coindesk report. BitMart said that it will compensate users who lost tokens from the hack.

BitMart resumed deposits and withdrawals in its exchange last Tuesday. As part of a security upgrade, the crypto exchange replaced all deposit addresses for crypto tokens.

The company asked users to verify deposit addresses before initiating deposits to ensure tokens are not deposited into the wrong addresses. It said tokens mistakenly deposited into the wrong address are not retrievable.

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