Bitmart crypto exchange says hackers took $ 150 million

[ad_1]

By Jennifer Korn, CNN Business

Hackers have stolen at least $ 150 million from the Bitmart crypto exchange, the platform said on Monday.

In a statement to users, Bitmart said an initial security check has been carried out and impacted assets have been identified.

The assets were stolen from two ‘hot wallets’, one hosted on the Ethereum blockchain and the other on the Binance Smart Chain. A “hot wallet” refers to crypto assets connected to the Internet and more easily accessible to owners than offline “cold wallets”. While it is more convenient to keep cryptocurrency in a hot wallet, there is an additional risk of hacking such as Bitmart breach.

The hack was first reported by blockchain data security and analytics company Peckshield and was later confirmed by Bitmart CEO Sheldon Xia.

According to Peckshield’s analysis, unidentified hackers used a stolen private key to open both wallets and extract funds. Peckshield claims that hackers could have stolen up to $ 196 million in assets. All Bitmart assets not held in those wallets are secure, according to the company.

Bitmart will use its own funding to cover losses and compensate impacted users. Crypto exchange Huobi Global has supported the company in its race to mitigate the hack. Huobi tweeted on Monday that he would help Bitmart by reporting and handling any inbound assets potentially resulting from the hack.

All Bitmart withdrawals were suspended on Saturday. Xia tweeted on Monday that the deposit and withdrawal functions would be gradually reinstated from Tuesday.

Xia will host an AMA at 8 p.m. EST on Telegram on Monday to share more information on the hack, compensating affected users and the next steps in resuming operations, according to the BitMart Twitter account.

The-CNN-Wire ™ & © 2021 Cable News Network, Inc., a WarnerMedia Company. All rights reserved.

[ad_2]