Incident Overview
On June 4 Lykke CEX was exploited and lost $22 million worth of crypto assets.
Lykke, a centralized cryptocurrency exchange based in Switzerland, halted withdrawals following a security breach on June 4, which resulted in the loss of over $22 million in crypto assets. The incident was publicly acknowledged by the Lykke team in a social media post on June 10. They assured users that their funds were safe and would be recovered, although both Lykke UK and Lykke Corp AG were affected by the attack.
Incident Report
Protocol Information
What the Attacker Needed to Succeed
Understanding the prerequisites for this type of attack helps auditors identify protocols that are most at risk and helps developers build better defenses.
What Auditors Should Check
If you're auditing a protocol with similar architecture to Lykke, these are the critical security checks that could have prevented this incident (June 2024).
- Verify all logic paths related to Other are guarded by proper access controls and input validation
- Review privileged functions (owner, admin, governance) for potential abuse vectors - centralization risks should be documented and bounded with timelocks or multi-sigs
Master these auditing techniques with hands-on labs and real exploit scenarios in the Smart Contract Hacking course.
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