Allegedly, Four Dragons, a Kyrgyz cryptocurrency exchange, falls victim to a hack resulting in a loss of $100 million.
Four Dragons, a crypto exchange based in Kyrgyzstan, has announced that it experienced a security breach which resulted in a significant loss of funds. The attack took place on February 22, and the exact amount of crypto stolen has not been disclosed but is estimated to be worth around $100 million.
Although the exchange did not provide specific details about the stolen amount, it assured its customers that its operations would continue as normal despite the loss of liquidity. It is unclear how the hackers gained access to the exchange’s hot wallets.
Despite the hack, Four Dragons has stated that it will fulfill its obligations to clients and partners. The exchange has also revealed 16 Bitcoin addresses to which the stolen funds were transferred. At present, a significant portion of the stolen crypto remains in these identified addresses.
In an effort to recover the stolen funds, Four Dragons is offering a reward of 10% of the returned amount to anyone who assists in the recovery process. The exchange has also stated that it is prepared to provide additional information and guarantee anonymity to those who come forward.
Kyrgyzstan’s regulatory landscape for cryptocurrencies is still developing. Although the country has taken initial steps to regulate virtual assets, there is considerable uncertainty and ambiguity surrounding the implementation of specific regulations. Additionally, Kyrgyzstan currently lacks specific guidelines for crypto exchanges, as the existing legislation primarily focuses on defining the parameters of virtual assets rather than directly regulating exchanges.
