Share this article
Draper-Backed Exchange in Lockdown Following 'Sophisticated' Attack
Coinhako has restricted user accounts since last Friday following an "attack," but has not released many details around the incident.
By Paddy Baker
Updated Sep 13, 2021, 12:22 p.m. Published Feb 27, 2020, 7:05 p.m.
Coinhako, a cryptocurrency exchange backed by Tim Draper, has restricted user withdrawals after falling victim to a "sophisticated attack."
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
The Singapore-based exchange told users Friday that account send functions for cryptocurrencies had been temporarily disabled. Although a spokesperson initially said this was for "network maintenance", the exchange admitted Saturday it had been victim to an attack and that it would impose account restrictions to prevent "unauthorized transactions," until the matter had been fully resolved.
The exchange has not provided further details on the attack's nature, or any information on whether assets were stolen.
"We have detected a sophisticated and coordinated attack on specific Coinhako accounts, and have disabled the send function as a preventive measure," a spokesperson said on the exchange's Telegram channel.
Fewer than 20 Coinhako users are believed to have been directly affected by the attack.
Coinhako's spokesperson said the attack was not a wallet hack and user private keys were not affected.
Launched in 2014, Coinhako is a popular gateway into cryptocurrencies for Singapore traders through its Singapore dollar trading pairs. The exchange launched an over-the-counter desk in October 2019.
Speaking to CoinDesk, Coinhako CEO Yusho Liu said users' send function would remain restricted as a "key countermeasure against unauthorized transaction outflows." The exchange has also reset passwords and two-factor authentication for all users.
Cryptocurrency deposits, trading services and fiat currency withdrawals were still fully functional. Users that had been affected by the attack have also been fully reimbursed, Liu confirmed. The exchange did not respond to questions about the attack's nature.
Coinhako recieved a six-figure personal investment in December 2014 from venture capitalist Tim Draper soon after coming out of Boost VC, the accelerator run by son Adam Draper.
CoinDesk approached Tim Draper for comment, but he had not responded by press time.
Coinhako is scheduled to resume full operational capacity on March 1.
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Coinbase Sees Crypto Recovery Ahead as Liquidity Improves and Fed Rate Cut Odds Climb
The crypto exchange also took note of a so-called AI bubble that continues to go strong and a weaker U.S. dollar.
What to know:
- Coinbase Institutional is seeing a potential December recovery in crypto, citing improving liquidity and a shift in macroeconomic conditions that could favor risk assets like bitcoin.
- The firm's optimism is driven by rising odds of Federal Reserve rate cuts, with markets pricing in a 93% chance easing next week, and improving liquidity conditions.
- Several recent institutional developments, including Vanguard's crypto ETF policy reversal and Bank of America's greenlighting of crypto allocations, have contributed to bitcoin's rebound from recent lows.
Top Stories
