Crypto Exchange Bitrue Suffers $23M Hack Due to Hot Wallet Exploit

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Cryptocurrency exchange Bitrue suffered a hot wallet exploit, allowing attackers to withdraw various crypto assets worth nearly $23 million.

Announcing the news on April 14, Bitrue said he had to temporarily suspend all withdrawals due to a brief exploit of his hot wallet. The company plans to reopen withdrawals on April 18, 2023, after performing additional security checks.

3/4: To perform additional security checks, Bitrue will temporarily suspend all withdrawals and reopen withdrawals on April 18, 2023. We ask for your understanding and patience at this time. All identified users who are affected by this incident will be fully compensated.

Bitrue (@BitrueOfficial) April 14, 2023

Bitrue pointed out that he was able to fix the issue quickly, which helped the platform prevent another fund leak. We take this matter seriously and are currently investigating the situation, Bitrue said, adding that the affected active wallet only represents less than 5% of the exchanges’ overall funds. The firm wrote:

The rest of our wallets remain secure and have not been compromised. We are conducting a thorough security review and will update you as we progress.

Bitrue executives have promised to fully compensate all identified users affected by the incident. Holo (HOT) and Polygon (MATIC).

Related: South Korean Crypto Exchange GDAC Hacked for Nearly $14 Million

As noted earlier, hackers have increasingly embraced decentralized finance (DeFi) hacks over the past few years, moving slightly away from traditional centralized exchanges. In the first three months of 2022, crypto exchange hacks accounted for just 3% of all stolen crypto, while 97% came from DeFi protocols, according to data from Chainalysis.

Percentage of value stolen by type of victim, 2020-2022 Q1. Source: Chain Analysis

Founded in Singapore in 2018, Bitrue is a major centralized cryptocurrency exchange, trading nearly $2 billion worth of crypto daily on average, according to data from CoinGecko. The company has been hacked in the past, losing nearly $5 million to Cardano (ADA) due to a wallet hack in 2019.

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