Nobitex, Iran’s largest cryptocurrency exchange, has confirmed a security breach that led to unauthorised access to parts of its infrastructure, amid escalating cyber hostilities between Iran and Israel.
The breach compromised internal communication systems and a portion of the exchange’s hot wallet, leading the company to suspend access to the platform as a precautionary measure.
Nibitex released a statement on Wednesday assuring users that their funds were secure and pledging full compensation for any potential losses.
Nobitex activates emergency protocol for security breach
Meanwhile, the $81 million attack was claimed by the Pro-Israeli hacker group Gonjeshke Darande (Predatory Sparrow), claimed responsibility for the attack which triggered a huge loss of about $81 million according to Crypto.news.
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Nobitex disclosed that the breach was detected earlier today, prompting immediate actions from the company team.
“Immediately upon detection, all affected systems were isolated, and our internal incident response teams initiated a comprehensive investigation in accordance with industry best practices,” the statement said. The team’s immediate response aims to contain the breach and prevent further compromise.
“All user funds remain safe. The vast majority of assets are stored in cold wallets and were not impacted. The breach was limited to a portion of our hot wallet, which is used for day-to-day liquidity,” Nobitex assured.
This distinction between hot and cold wallets is crucial, as cold wallets, typically offline, are far less susceptible to cyberattacks.
Furthermore, Nobitex has pledged full financial responsibility for the incident and also promises full commitment to covering all losses, thereby mitigating user anxiety and maintaining trust in the platform during this challenging period.
“Nobitex takes full responsibility for this incident. All potential user losses will be fully covered through our insurance fund and internal reserves. Users will not experience any financial loss,” the exchange affirmed.
Access to the platform has been temporarily suspended
As a precautionary measure, access to the Nobitex platform, including both its website and mobile application, has been temporarily suspended.
This suspension will remain in effect “while we complete a full security audit and reinforce all systems.”
The exchange emphasised its dedication to transparency, stating, “We are fully committed to transparency and the security of our users. Additional updates will be shared as our investigation progresses.”
The Nobitex Communications Team concluded their statement by expressing appreciation for the community’s trust and patience… during this time.
While Nobitex’s official statement focuses on the security measures and assurances, external reports have indicated the scale of the financial loss and the potential geopolitical motivations behind the attack.
However, Nobitex has not publicly disclosed the amount of digital assets affected. The full extent of the damage and the details of the ongoing investigation are yet to be revealed by the exchange.