Hackers are robbing crypto exchange Bitmart of $ 196 million, according to security companies

Hackers have robbed crypto trading platform Bitmart of $ 196 million, according to security companies.

Bitmart confirmed the hack in an official statement on Saturday night, calling it a “major security breach” and writing that the hacker withdrew about $ 150 million in assets. However, blockchain security and data analytics company Peckshield estimates losses close to $ 200 million.

Bitmart said in a statement that all withdrawals have been temporarily suspended until further notice and a thorough security review is underway.

Peckshield first noticed the breach on Saturday, noting that one of Bitmart’s addresses showed a steady spill of tens of millions of dollars at what Etherscan called a “bitmart hacker.”

Peck shield estimation The Bitmart lost about $ 100 million in various cryptocurrencies on the Ethereum blockchain and another $ 96 million in coins on the Binance smart chain. Hackers have successfully combined over 20 tokens, including Binance Coin, Safe Moon, and Shiba Inu.

According to Bitmart, the affected Ethereum and Binance smart chain “hot wallets” had a “small percentage” of the exchange’s assets. The statement further stated that all other wallets were “safe and intact.”

Those who choose to keep their own cryptocurrency can save it as “hot”, “cold”, or a combination of the two. The hot wallet is connected to the internet and the owner has relatively easy access to the coin so they can access and use the crypto. The trade-off with convenience is the potential for exposure to malicious individuals.

CNBC contacted several Bitmart employees and asked them to be clearer about hacking. This includes whether the customer’s funds have been specifically targeted for violations, and if so, whether the user will be reimbursed. CNBC hasn’t received a response yet, but an email to the work address of Bitmart founder and CEO Sheldon Xia ( Xia’s unidentified Twitter account) It was returned with the message “Recipient’s address denied: Access denied”.

According to CoinGecko data, Bitmart, which offers a combination of spot trading, leveraged futures trading, lending and staking services, is typically ranked as one of the top centralized crypto exchanges in volume.

According to Peckshield, Bitmart says it’s still unclear what methods hackers might have used, but it was very easy to see what happened after the breach. According to security companies, this was a typical case of “moving out, replacing, cleaning”.

After sending money from Bitmart, hackers apparently used a decentralized exchange aggregator called “1 inch” to exchange stolen tokens for ether. From there, the ether coins were deposited in a privacy mixer known as a tornado cash. This makes it difficult to track money.

According to Rick Holland, chief information security officer at cyber threat intelligence company Digital Shadows, cybercriminals often look to mixed and tumbling services. Holland told CNBC that these services will allow users to combine illegal funds with clean cryptocurrencies to create essentially new types of cryptocurrencies, at which point they will turn to currency swaps.

Therefore, while the blockchain is open to the public, there are still ways to make it difficult for investigators to track transactions to their final destination.

This latest breach occurs in a recent wave of hacking.

Last week, cryptocurrency lender Celsius Network admitted to losing money as a result of a $ 120 million hack on the decentralized financial platform Badger DAO (although exactly how much it lost). Not specified).

And in August, hackers stole more than $ 600 million of tokens from the cryptocurrency platform PolyNetwork. With a strange twist, the attacker then returned almost all the money.

Hackers are robbing crypto exchange Bitmart of $ 196 million, according to security companies

Source link Hackers are robbing crypto exchange Bitmart of $ 196 million, according to security companies

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