Hackers Stole $200 Million From Crypto Exchange “Bitmart”

SYNOPSIS

  • A security firm reported Saturday that hackers stole $196 million from cryptocurrency trading platform Bitmart.
  • In an official statement issued Saturday night, Bitmart confirmed the attack. The firm described it as “a large-scale security compromise” in which hackers withdrew around $150 million in assets.
  • Peckshield, a blockchain security and data analytics startup, believes the damage to be closer to $200 million.

A security firm reported Saturday that hackers stole $196 million from cryptocurrency trading platform Bitmart.

In an official statement issued Saturday night, Bitmart confirmed the attack. The firm describing it as “a large-scale security compromise” in which hackers withdrew around $150 million in assets.

Peckshield Detected the Breach

According to Peckshield, a blockchain security and data analytics startup, the damage is closer to $200 million.

All withdrawals have been temporarily halted until further notice, according to Bitmart, who also stated that a full security examination is underway.

On Saturday, Peckshield was the first to identify the breach, stating that one of Bitmart’s addresses showed a consistent outflow of tens of millions of dollars to an address known as the “Bitmart Hacker” by Etherscan.

Bitmart lost roughly $100 million in various cryptocurrencies on the ethereum blockchain, according to Peckshield, and another $96 million in coins on the Binance smart chain.

Addressing the breach, Founder and CEO of Bitmart Sheldon Xia wrote series of Tweets about the ongoin situation.

Binance currency, safemoon, and shiba inu were among the more than 20 tokens taken by the hackers.

The affected ethereum and Binance smart chain “hot wallets,” according to Bitmart, only held a “tiny percentage” of the exchange’s assets.

All other wallets were “safe and untouched,” according to the statement. People who want to keep their own cryptocurrency can keep it “hot,” “cold,” or a mix of the two.

What is A Hot Wallet?

A hot wallet is one that is connected to the internet that allows users to access and spend their cryptocurrency with relative ease.

The cost of convenience is the risk of being exposed to bad actors.

According to CoinGecko data, Bitmart is one of the top centralised crypto exchanges by volume, offering a mix of spot transactions, leveraged futures trading, lending, and staking services.

Hacker’s Method Still Unknown

According to Bitmart, it is still unknown what methods the hackers employed, but what transpired following the breach was rather simple, according to Peckshield.

According to the security firm, it was a classic case of “transfer-out, exchange, and wash.”

Hackers allegedly used the decentralised exchange aggregator known as ‘1inch’ to exchange the stolen tokens for ether after transferring the funds out of Bitmart.

The ether currencies were then transferred into Tornado Cash, a privacy mixer that makes the money harder to track.

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