Crypto Bull Tim Draper-backed Coinhako, Temporary Freezes Withdraws After An Attack

Following a sophisticated attack, Coinhako crypto exchange which enjoys the backing of Tim Draper, announced that it was restricting its clients from withdrawing their funds.

The exchange which operates in Singapore announced on Friday that it had temporarily suspended the crypto account send capabilities. Initially, the exchange’s spokesperson had said the suspension was to allow for network maintenance. However, on Saturday the exchange admitted it had been attacked by unknown fraudsters and, as a result it was effecting a temporary restrictions to safeguard its users from ‘unauthorized transactions. The firm also stated that the restriction would be in place until the matter was fully resolved.

The nature of the attack remains unknown as the platform did not provide any further details. It is still unclear if any assets were stolen. However, in a tweet to reveal the news, the firm stated that the affected parties had been fully reimbursed.

A firm’s spokesperson stated that the firm had detected sophisticated as well as well organized attack on various Coinhako accounts which prompted the disabling of the send function to prevent any unwarranted transactions.

CoinDesk reports that about 20 Coinhako clients were allegedly affected by the malicious attack. The Coinhako spokesperson however clarified that the malicious attack was not aimed at its wallet and, therefore, all the clients’ private keys had not been affected.

Coinhako was started in 2014 and became the most popular gateway for cryptos among the traders based in Singapore since it offered trading for Singapore dollar pairs. In October last year, the exchange rolled on an over-the-counter service for its users.

Despite the disabling of the send functions, fiat currency withdrawals, crypto deposits as well as trading services are still operational. Yusho Liu, Coinhako CEO, stated that the send function will remain disabled to safeguard the users’ funds from unauthorized transactions outflow.

Tim Draper, a renowned venture capitalist, backed the exchange with a six figure investment in 2014 just days after withdrawing from Boost VC that is operated by his son Adam Draper.

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