According to cryptocurrency exchange Four Dragons, a security system breach led to “significant funds being withdrawn.”
The cryptocurrency exchange Four Dragons, based in Kyrgyzstan, declared on its website that it was the target of a hacking assault on February 22. As a result, an undisclosed quantity of cryptocurrency, purportedly valued at approximately $100 million, was lost.
The cryptocurrency exchange, with its headquarters in Bishkek, did not reveal the exact amount that was taken, but it did admit that it was “significant,” assuring users that business operations “continue as normal, despite the loss of some liquidity.”
The actual method by which the hackers allegedly obtained access to the exchange’s hot wallets is unknown.
Four Dragons assert that the hack “will not affect our obligations to clients and partners,” notwithstanding the occurrence. Additionally, the exchange revealed the 16 Bitcoin addresses that received the pilfered money. A sizable amount of the pilfered cryptocurrency is still in the identified addresses as of the time of publication.
“We are taking maximum measures to ensure these funds cannot be used. We ask everyone concerned to take this information into account.”
The exchange also stated that it is “prepared to provide additional information and guarantee anonymity” and that it is offering a reward of 10% of the returned money “to anyone who helps in the recovery of the stolen funds.”
The regulatory environment in Kyrgyzstan pertaining to cryptocurrency is currently developing. Although the nation has started the process of regulating virtual assets, there still needs to be more clarity and certainty surrounding the actual application of the laws.
Furthermore, since the law passed in 2022 mostly covers the parameters of virtual assets rather than directly regulating exchanges, Kyrgyzstan needs explicit requirements for crypto exchanges.
