The cryptocurrency trading platform, Indodax, has addressed the loss of around Rp 300 billion it incurred due to a cyberattack. The financial impact of the incident is reportedly only about 3% of INDODAX’s total crypto asset reserves.
“Although we suffered a loss of around Rp 300 billion due to the cyberattack, the financial impact is only about 3% of INDODAX’s total crypto asset reserves,” said INDODAX CEO, Oscar Darmawan, in a written statement on Sunday (September 29, 2024).
With over 6.8 million users, INDODAX claims to have crypto asset reserves valued at Rp 11.5 trillion, including 4,806.34 Bitcoin worth Rp 4.288 trillion, 36,915.47 Ethereum worth Rp 1.334 trillion, and various other crypto assets valued at approximately Rp 5.907 trillion.
Following the hacking incident, INDODAX claims to have successfully restored user trust with a total transaction volume exceeding Rp 2.3 trillion during the period of September 14-25, 2024. This indicates that the public’s confidence level in the INDODAX platform remains high post-incident.
INDODAX’s commitment to transparency and openness is considered a key factor in helping restore user trust.
“Transparency is a fundamental foundation in building and maintaining public trust. With the publication of Proof of Reserve, we provide assurance to users that they can monitor the security of their assets at any time. This is a tangible form of our responsibility to our members,” Oscar stated.
Oscar also added that over the past two years, INDODAX has been encouraging other crypto exchanges to adopt similar measures.
“We have been pushing the crypto industry in Indonesia to be more open and transparent. Although no one has followed suit yet, we believe that transparency will be an important factor in creating a secure and trustworthy crypto ecosystem in the future,” he explained.
Angga Andinata, a crypto analyst and Crypto & Web 3 educator, also expressed appreciation for the steps taken by INDODAX. “The Proof of Reserve implemented by INDODAX is not just in the form of a report but is also integrated in real-time, allowing the public to directly verify reserve data. This step sets an example that should be followed by other crypto exchanges in Indonesia,” he revealed.
Furthermore, in the context of upcoming regulation, Angga highlighted that the Financial Services Authority (OJK) plans to supervise crypto assets in Indonesia more strictly, where crypto asset reserves will be stored by custodian companies.
“I hope that custodian companies will also be able to publish their reserves transparently to maintain user trust,” Angga added.
With this transparency initiative, INDODAX hopes to set a new standard in the Indonesian and global crypto industry. “We hope more exchanges will follow our lead to create a crypto ecosystem that is safer, more transparent, and trustworthy,” Oscar concluded.
