On June 10, Lykke cryptocurrency exchange made a startling announcement on social media, revealing that it had been targeted in an exploit on June 4, resulting in a loss of $22 million in crypto assets. As a precautionary measure, the exchange has temporarily halted withdrawals, assuring users that their funds are secure and will be recovered.

Both Lykke UK and Lykke Corp AG were affected by the attack, prompting the exchange to take swift action in suspending withdrawals to prevent further unauthorized access to user funds. The exchange, founded in 2015 and headquartered in Switzerland, has positioned itself as a "no fee crypto exchange," having transitioned from its origins as a prominent forex broker.

The exploit came to light when blockchain security researcher SomaXBT disclosed the incident on June 9, accusing the Lykke team of attempting to conceal the breach. Despite attempts to downplay the situation, users had already noticed disruptions in the exchange's services, with rumors swirling about a potential hack.

In response to the incident, Lykke issued a public apology to affected users, expressing regret for the inconvenience caused. Assuring users of their safety, the exchange emphasized its solid capital reserves and diverse portfolio, ensuring it could absorb any potential losses resulting from the attack.

Additionally, the exchange disclosed plans for a criminal investigation, having identified the IP addresses of the attacker. A cybersecurity team has been enlisted to aid in blocking and recovering the stolen assets, with over $22 million estimated to have been lost in the attack.

This breach underscores the ongoing vulnerability of centralized exchanges to cyber threats, with researchers continuously uncovering exploits against these platforms. Just recently, on April 19, Rain exchange fell victim to a $14.1 million hack, further highlighting the need for heightened security measures in the cryptocurrency ecosystem.