Bitmart loses $ 200 million in hack by unknown attackers – Bitcoin News

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Bitmart, a cryptocurrency exchange, suffered an attack yesterday that exploited some security vulnerabilities in order to access funds from the exchange. The attack targeted the platform’s hot wallets, particularly Ethereum-based and Binance Smart Chain-based wallets. The hackers managed to take almost $ 200 million in tokens from the platform.

Hot Bitmart operated wallets

Bitmart lost over $ 200 million in a hack involving its hot wallets yesterday. The issue was first identified by Peckshield, a blockchain security and auditing company, which sounded the alarm about a possible hot wallet vulnerability on social media. The wallets involved were those that contained tokens based on ETH and BSC.

Bitmart officials initially estimated the losses at $ 150 million, but PeckShield investigated the funds taken, saying the losses were around $ 200 million. The hack took significant amounts of SHIB, SAFEMOON, SAND, and MANA, among others. The event affected the price of some listed low-liquidity tokens, due to the liquidation of large quantities of these on decentralized exchanges.

Bitmart acknowledged the situation and said at the time that losses from the attack were a small portion of the holdings in exchange. An announcement from the company said:

The affected ETH hot wallet and BSC hot wallet carry a small percentage of assets on BitMart and all of our other wallets are secure and unharmed. We are currently conducting a comprehensive security review and will be releasing updates as we move forward.

Funds washed away by the tornado

The exploiters quickly moved the funds to other platforms, intending to mix up the captured cryptocurrency. According to Peckshield, all Binance Smart Chain and Ethereum tokens were exchanged for ethereum using 1inch, a decentralized exchange platform, and then sent to Tornado.cash, an obfuscation protocol that allows users to make transactions less sensitive to tracing.

This is one of the most devastating attacks on a centralized exchange this year, as much of the exploit risk has shifted to decentralized finance (challenge) platforms. Due to this situation, the exchange has suspended withdrawals of all assets until it conducts an investigation and re-examination of the security of the platform and its vulnerabilities.

What do you think of this $ 200 million Bitmart exchange hack? Tell us in the comments section below.

Image credits: Shutterstock, Pixabay, Wiki Commons

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