In a dramatic turn of events, Lykke cryptocurrency exchange has acknowledged a significant security breach, forcing it to halt all withdrawals. The announcement, made via social media on June 10, came six days after the exploit on June 4. Lykke assured users that their funds are "safe and will be recovered."

Both Lykke UK and Lykke Corp AG were impacted by the hack. To prevent further issues, the exchange has paused withdrawals as a precautionary measure.

Launched in 2015, Lykke operates from Switzerland and promotes itself as a "no fee crypto exchange" with roots in forex trading. However, this recent exploit has cast a shadow over its operations.

The breach was first identified by blockchain security researcher SomaXBT on June 9, who accused Lykke of attempting to conceal the security lapse. SomaXBT alleged that $19.5 million worth of crypto assets were lost, sharing a Discord message from the Lykke team claiming "unscheduled full system maintenance."

Users had already suspected foul play, with complaints surfacing on X about the exchange's functionality and rumors of a hack.

In its June 10 statement, Lykke apologized to affected clients and partners, asserting that their solid capital reserves and diverse portfolio would cover potential losses, ensuring the safety of client funds. The exchange revealed it had identified the hacker's IP addresses and had hired a cybersecurity team to block and recover the stolen assets. The estimated loss stands at over $22 million.

This incident adds to a growing list of unacknowledged exploits in the crypto world. On April 19, ZachXBT reported that Rain exchange had been hacked for $14.1 million, which Rain later confirmed, assuring that customer funds were not impacted.

As the investigation continues, Lykke's users are left waiting for a resolution, hoping the exchange's promises hold true.