M2 Exchange recovered from a $13.7 million security breach within 16 minutes. A security firm said the incident highlights the growing vulnerability of crypto exchanges.
Crypto Exchange M2 Confirms $13.7 Million Breach, Says Issue Resolved Within 16 Minutes
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Normal Service Restored
The United Arab Emirates-based cryptocurrency exchange, M2 Exchange, said it swiftly resolved a security incident on Oct. 31 that involved $13.7 million. The exchange said customer funds lost during the incident had been restored, and normal service had resumed with additional security measures in place.
Cybersecurity firm Cyvers detected suspicious transactions involving the exchange across the Ethereum, Solana, and Bitcoin networks. Cyvers characterized the breach as an access control violation, saying the affected address had received 3.7 million USDT, 97 million Shiba Inu tokens, and 1,378 ETH. The digital assets were subsequently converted into ether.
In its statement acknowledging the attack, M2 said it responded to the incident within 16 minutes. The exchange emphasized the steps taken to protect user funds and restore normal service.
“M2 has taken full responsibility for any potential losses, demonstrating our unwavering commitment to safeguarding our customers’ interests. All services are now fully operational with additional controls in place,” M2 said in a statement.
Hackers Target Centralized Finance Platforms
The crypto exchange added that it is now working with relevant legal and regulatory authorities to ensure the issue is addressed thoroughly.
Meanwhile, in a statement shared with Bitcoin.com News, Cyvers said the latest security incident highlights the growing vulnerability of both centralized and decentralized finance platforms to attacks. However, the security firm noted that centralized finance platforms appear more susceptible, citing a 1,000% surge in the number of incidents compared to a 25% drop in losses for decentralized finance platforms during the same period.
Cyvers pointed to the $305 million DMM hack and the $235 million Wazirx heist as examples of the risks facing cryptocurrency exchanges. The firm urged these entities to adopt better strategies to protect users.
“In light of this breach, cryptocurrency exchanges must adopt effective strategies to protect user assets, including robust access controls, real-time monitoring with AI, regular security audits, advanced threat detection, employee and user education, and a comprehensive incident response plan. Investing in cybersecurity insurance and staying updated on regulatory requirements are also critical steps in mitigating risks,” the security firm advised.
