Flash.Trade resumes trading after $98K unauthorized withdrawal; deposits and withdrawals paused for ~24 hours, suspected inside job.
Security & Exploits ·
Flash.Trade restored trading functionality after an unauthorized $98K withdrawal, though the platform maintained a pause on deposits and withdrawals for approximately 24 hours to complete fund reconciliation. The exchange stated that all user funds remain secure and that the team has fully covered the affected amount, with zero impact to users.
The incident triggered the platform's newly deployed batching and monitoring systems, which detected and contained the breach. Flash.Trade indicated it is awaiting a full risk disclosure and fix patch from MagicBlock, with an estimated timeline of 12 to 24 hours. On-chain analysis suggested the exploit may have involved an inside actor, as the $98K originated from a newly created wallet showing no prior transaction history.
The sequence of resuming trading while halting withdrawals—deliberately ordered to reconcile funds before reopening exit channels—remains unusual and leaves open questions about the scope of the security review underway and whether additional measures will be implemented once MagicBlock's assessment concludes.