Katherine Ross

CoinEx has begun to resume withdrawals and deposits following a $70 million hack earlier this month.



The company said that it expects its wallet system to be reconstructed and deployed on Thursday, Sept. 21.&nbsp;



It added that it is updating the deposit addresses for some assets, including bitcoin (<a href="https://blockworks.co/price/btc">BTC</a>), ethereum (<a href="https://blockworks.co/price/eth">ETH</a>), litecoin (LTC), bitcoin cash (<a href="https://blockworks.co/price/bch">BCH</a>), dogecoin (DOGE), shiba inu (SHIB), and Binance coin (BNB).



The blog post <a href="https://announcement.coinex.com/hc/en-us/articles/19319131621908-CoinEx-Will-Resume-Deposit-and-Withdrawal-Services-of-BTC-ETH-USDT-USDC-etc-Estimated-on-Sep-21-2023">warned</a> users that they should only use the new deposit addresses because “the old addresses will NO LONGER work and assets sent to them will be permanently lost.”



CoinEx noted that it expects a “large number of withdrawals” and that it expects withdrawal times to take longer than usual as it works to ensure that the new wallet system is stable enough to resume withdrawals and deposits for more assets.



“We&#8217;ve finalized our strategy to resume withdrawals and are set to progressively resume these services within 7 working days. Ensuring 100% asset security remains our top priority before reactivating withdrawal functionalities,” CoinEx <a href="https://twitter.com/coinexcom/status/1703686758079271258?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1703686758079271258%7Ctwgr%5Efbd3af744615d9290bdce61ae35e09a329122997%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fcointelegraph.com%2Fnews%2Fcoinex-compromised-private-keys-behind-70-million-hack">said</a> in a tweet on X, formerly Twitter, on Monday.



A suspected hack of the asset management platform happened on Sept. 12 when <a href="https://blockworks.co/news/coinex-hack-ether-hot-wallet-outflows">data showed large hot wallet outflows</a>.&nbsp;



CoinEx agreed in June to pay $1.7 million to the New York Attorney General and cease operations in New York. The NYAG sued the Hong Kong-based crypto trading platform in February of this year, alleging that it violated the Martin Act.&nbsp;



Essentially, the Martin Act ensures that only registered dealers, brokers and salesmen sell or offer securities.&nbsp;



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CoinEx to reopen some withdrawals and deposits following $70M hack

Casey Wagner

<div id="highlights-block_62966fa71b63d" class="highlights">
 <ul>
 <li>More digitized payment models are going to continue to emerge, JPMorgan analysts estimate</li>
 <li>“Digital transformation is not a sprint, it’s a marathon, but it also has no finish line,” a JPMorgan Jeremy Balkin said</li>
 </ul>
 
</div>



JPMorgan Chase is amping up its investments in payment processors, and — according to the global bank’s head of innovation and corporate development — everyone else in the financial services industry should follow suit.&nbsp;



“Continue to focus on payments, because I think that&#8217;s a space that&#8217;s borderless,” Jeremy Balkin said at the Mediterranean Business Summit in New York Tuesday.



Earlier this year, JPMorgan moved to acquire around 49% of Athens-based payments services provider Viva Wallet. In 2021, the bank made nearly 20 total investments in the fintech space, including acquiring a 75% stake in <a href="https://www.jpmorgan.com/news/jpmorgan-to-take-majority-ownership-of-volkswagen-payments-business" target="_blank" rel="noreferrer noopener">Volkswagen Payments</a>, a platform designed for the automotive industry.&nbsp;



“I think payments…[are] the natural tip of the spear for financial services as it relates to intersecting with the new world of fintech,” Balkin said. “I think it&#8217;s the ideal space to collaborate and to build your business models to move money faster, safely, more efficiently.”&nbsp;



Banks with the ability to custody the digital assets of clients and be competitive in the landscape are going to be the most successful in coming years, he added. 



JPMorgan analysts estimate tech modernization efforts will top $2.8 billion in 2022, a billion dollar increase from 2019. This increase in technology infrastructure will lead to more than $5 trillion in payments, the bank said in <a href="https://www.jpmorganchase.com/content/dam/jpmc/jpmorgan-chase-and-co/investor-relations/documents/events/2022/jpmc-Investor-Day-2022/2022-consumer-community-banking-investor-day.pdf" target="_blank" rel="noreferrer noopener">materials</a> released as part of its 2022 investor day.



“Winning in payments is our strategic imperative,” analysts wrote.&nbsp;



Payments service providers such as PayPal and Block have “done an incredible job penetrating the consumer market,” Balkin said, adding, “the question is what happens in this new environment of interest rates, the cost of capital is not free.”&nbsp;



Balkin expects ample consolidation in payments to come, and the biggest companies are likely going to continue to thrive — akin to Amazon&#8217;s rise during the dot-com bubble. 



Digital banking is only going to continue ramping up, Balkin said, meaning the focus on virtual is more important than ever. In 2021, more than 65% of JPMorgan accounts were opened online, analysts said.&nbsp;



“Digital transformation is not a sprint, it’s a marathon, but it also has no finish line, it&#8217;s perpetual, it has to continue,” Balkin said.



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Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.



Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. <a href="https://blockworks.co/newsletter/onthemargin">Subscribe to the Forward Guidance newsletter</a>.



Get alpha directly in your inbox with the <a href="https://blockworks.co/newsletter/research">0xResearch newsletter</a> — market highlights, charts, degen trade ideas, governance updates, and more.



The Lightspeed newsletter is all things Solana, in your inbox, every day. <a href="https://blockworks.co/newsletter/lightspeed">Subscribe to daily Solana news</a> from Jack Kubinec and Jeff Albus.

payment service providers