Koinex Reassesses Security Measures After Binance Hack

  • Koinex recently underwent “performance optimization” which lasted two days
  • Koinex is India’s largest crypto exchange by reported trading volume
  • The exchange is revisiting its security mechanism after Binance hack

After the dastardly hack of crypto exchange Binance which saw thieves steal bitcoin worth $40 million, India’s largest exchange by reported volume, Koinex has resumed operations after being down for more than two days.

Shutdown Causes Panic

Koinex, India’s largest cryptocurrency exchange platform tweeted on May 5 that all its services would be down for the next 24-48 hours due to “unanticipated system failure.”

The announcement took the exchange’s users by surprise as a shutdown period of two days is pretty unheard of in the crypto space.

Typically, exchanges halt operations for roughly 4-6 hours when they are scheduled to undergo a system upgrade or optimization. However, after Koinex’s announcement, many users started speculating whether the exchange was hacked.

Later, however, the exchange cleared the air stating that all funds were safe and that users need to worry. Interestingly, because of system maintenance, the exchange also extended the last date for the six cryptocurrencies it is scheduled to delist from May 7 to May 14. These six digital tokens are ACT, CMT, GAS, XRB, NEO, and XZC.

Koinex eventually came back on May 7 at around 1300 Hrs IST in read-only mode. The exchange urged its users to log in, check their wallet balances, and report abnormalities, if any. Along with getting back in business, the exchange also sequentially restored all its services including Koinex Loop, its P2P exchange service which lets users convert their crypto holdings into Indian Rupee.

Bolstering their Security Mechanism

In light of the Binance exchange hack, Koinex on May 9, 2019, published a Medium post stating that the high-profile bitcoin heist made them revisit their security mechanisms. The blog post reads in part:

“Being the largest exchange in the country, it is our responsibility to ensure that all funds and data are safe at all times. A holistic security scrutiny is underway at the time of writing this blog and our engineering team is working hard to leave no stone unturned in establishing full confidence in our users by delivering better security on all our products and services.”

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