In a recent development, Kyrgyzstan-based crypto exchange Four Dragons disclosed that it suffered a hacker attack on February 22, resulting in the loss of a substantial amount of cryptocurrency, estimated to be around $100 million.
While the exact amount of crypto stolen was not specified, Four Dragons acknowledged the significance of the breach. However, the exchange assured its customers that operational activities would continue uninterrupted, albeit with some liquidity loss. The method through which the hackers gained access to the exchange’s hot wallets remains unclear.
Despite the security breach, Four Dragons maintains that it will fulfill its obligations to clients and partners without compromise. The exchange also revealed that the stolen funds were transferred to 16 Bitcoin addresses. Currently, a notable portion of the pilfered crypto remains within these identified addresses.
Further, in a bid to recover the stolen funds, Four Dragons announced a reward equivalent to 10% of the returned amount for anyone aiding in the recovery process. Additionally, the exchange assured full cooperation, offering further information while guaranteeing anonymity to those involved.
The incident sheds light on the evolving regulatory landscape surrounding cryptocurrencies in Kyrgyzstan. While initial steps have been taken to regulate virtual assets, the lack of specific guidelines for crypto exchanges poses challenges. Legislation passed in 2022 primarily focuses on defining virtual asset parameters but does not directly address exchange regulations, contributing to uncertainty within the industry.
