BitMart suffered from a large-scale security breach. According to the CEO of the cryptocurrency trading platform, hackers have been able to withdraw approximately $ 150 million worth of assets.
The hacks were related to one of the company’s ETH hot wallets and BSC hot wallets.
In a number of tweets, BitMart CEO Sheldon Xia, Confirmed:
“1/3 We have detected a large-scale security breach in connection with one of our ETH hot wallets and one of our BSC hot wallets. At the moment we are still finalizing the possible methods. The hackers were able to recover assets worth around 150 million US dollars. “
However, blockchain security and data analytics firm Peckshield estimates that Bitmart’s loss is closer to $ 200 million.
The CEO Sheldon Xia announced via his Twitter account, adding that the company is currently still finalizing the possible methods.
In affirming words, Xia emphasized that “the affected ETH Hot Wallet and BSC Hot Wallet carry a ‘small percentage’ of the assets on BitMart and all of our other wallets are safe and intact.”
BitMart is a cryptocurrency trading platform that offers real-time trading services, including Bitcoin (BTC) and Ethereum (ETH).
Xia hasn’t updated his Twitter post for 24 hours since his last tweet, and more updates are yet to be heard from the CEO. The company is currently conducting a security review and all payouts via the exchange platform are temporarily suspended until further notice.
According to several crypto-centric media outlets, the hack was first exposed by Peckshield and followed a collapse in cryptocurrency prices on Saturday.
Peckshield found that one of Bitmart’s addresses showed a steady tens of millions of dollars in outflow to what Etherscan called a “Bitmart hacker.”
According to CNBC, Peckshield has estimated that Bitmart lost around $ 100 million in various cryptocurrencies on the Ethereum blockchain and another $ 96 million in coins on the Binance smart chain. The hackers made off with a mix of more than 20 tokens, including Binance Coin, Safemoon and Shiba Inu.
On crypto trading platforms, people can store their cryptocurrency hot, cold, or a combination of both. A hot wallet is connected to the internet and allows owners relatively easy access to their coins so they can access and spend their crypto, but hot wallets are potentially vulnerable to hackers.
Although BitMart is still unclear which possible methods the hackers used, Peckshield stated that it was a classic case of “transfer-out, swap and wash”.
According to CNBC, hackers apparently used the decentralized exchange aggregator known as “1inch” to exchange the stolen tokens for ether after transferring funds from Bitmart. From there, the ether coins were deposited in a privacy mixer called Tornado Cash, which makes it difficult to trace money.
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