Crypto exchange ZB.com loses $4.8 million after halting client withdrawals

Quick Take

  • A potential hacker has drained almost $5 million from ZB.com’s hot wallet, according to PeckShield.
  • The funds have been liquidated on several decentralized exchanges.

ZB.com, a crypto exchange that halted withdrawals yesterday, has seen about $4.8 million removed from its hot wallet in a possible hack, according to a report by security firm PeckShield.

On-chain data shows significant amounts of over 20 crypto tokens moving from ZB.com’s hot wallet to another address on Tuesday. This address has subsequently liquidated all but five of these tokens as of the time of publishing.

These tokens were sold on several decentralized exchanges on Tuesday, in exchange for 2,224 ETH ($3.6 million). The potential hacker moved the funds to this wallet address where the ether tokens still sit as of the time of publishing. Meanwhile, another wallet controlled by the suspected hacker — where funds from ZB.com’s wallet were first moved — still holds about $1 million worth of those remaining five tokens.

The suspected hacking incident comes as ZB.com halted client withdrawals on Tuesday for "temporary maintenance."

THE SCOOP

Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy