UAE's M2 crypto exchange hacked for $13.7M, assures full fund recovery

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M2, a UAE-based crypto exchange, experienced a significant security breach that resulted in the loss of $13.7 million in digital assets.

In a Nov. 1 statement, the exchange disclosed that the incident occurred on Oct. 31 at approximately 3:16 A.M., noting that while its team responded swiftly to the attack, the breach still led to a substantial asset loss.

Although the exchange provided limited specifics on the breach, blockchain security firm Cyvers stated that the theft occurred across three addresses on the Bitcoin, Ethereum, and Solana networks.

Cyvers explained that a suspicious address had received approximately $3.7 million in USDT, 97 million SHIB, and 1,378 ETH. This address converted all these assets into ETH, with estimated losses totaling around $13 million. Currently, $10 million remains on the Ethereum network.

However, M2 assured customers that the situation had been resolved and that all affected funds had been fully restored. With this resolution, the firm stated that its services are operating as usual and have been bolstered by enhanced security controls.

Further, M2 emphasized its commitment to customer protection, assuming full responsibility for potential losses and working closely with authorities on the investigation. It stated:

“We are actively cooperating with relevant legal and regulatory authorities to ensure this matter is dealt with thoroughly and appropriately.”

CEXs exploit on the rise

Cyvers commented to CryptoSlate that this attack is part of a worrying trend of increasing security breaches in crypto.

According to the firm, crypto projects have lost more than $2 billion to hacks in the first three quarters of 2024 alone, surpassing all of 2023 and marking a 72% year-on-year increase.

Cyvers pointed out that centralized finance (CeFi) platforms have seen a nearly 1,000% spike in security incidents year over year, while DeFi platforms reported a 25% decrease in losses. However, they remain at risk due to the complexities of smart contracts and protocols.

Due to this, the firm advised crypto projects to implement strong security measures, including advanced access controls, AI-driven real-time monitoring, regular audits, threat detection systems, and a clear incident response plan.

Mentioned in this article

Bitcoin

Ethereum

Solana

Posted In: Ethereum, UAE, Exchanges, Hacks

Author

Oluwapelumi Adejumo

Journalist at CryptoSlate

Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.

Editor

Liam 'Akiba' Wright

Editor-in-Chief at CryptoSlate

Also known as "Akiba," Liam Wright is the Editor-in-Chief at CryptoSlate and host of the SlateCast. He believes that decentralized technology has the potential to make widespread positive change.

Disclaimer: Our writers' opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.

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