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Crypto Exchange Bit Mart hacked; Almost $ 200 million reported lost

77x bitcoin

It happened again, folks. Another crypto exchange hack is in the books. This time, the alleged victim is Bit Mart, which appears to have lost $ 150 million in digital currency funds at the time of this writing, although some companies, such as Peck Shield, a blockchain analytics firm, believe that the company may have lost about $ 200 million.

Bit Mart has been compromised

Peck Shield was the first entity to notice the gap. Analysts saw that around $ 100 million of crypto was missing via the Ethereum blockchain exchange, while another $ 96 million was allegedly stolen by Binance’s smart grid. About 20 different tokens were taken, including the Shiba Inu and Lua Segura coins.

So far Bit Mart says it has suspended all withdrawals until executives can further analyze the situation and find out what happened. An official statement says:

We have identified a large-scale security breach related to one of our active ETH wallets and one of our active BSC wallets. We are currently still completing the possible methods used. The hackers managed to extract assets worth approximately $ 150 million. The affected ETH active wallet and the affected BSC active wallet have a small percentage of assets in Bit Mart and all of our other wallets are safe and unharmed. We are now conducting a full security review and will post updates on our progress. We are currently suspending withdrawals until further notice. We ask for your understanding and patience in this situation. During this period, we will do our best to maintain transparency and we appreciate your support. Thanks a lot.

The company also stated that all funds withdrawn from individual users would be fully reimbursed through Bit Mart’s own reserves. The executives said:

BitMart will use our own funding to cover the incident and compensate affected users. Users' assets will not be damaged.

Security analysts widely claim that hot wallet storage usage does not compare to cold wallet as the former is tied directly to the internet and thus provides hackers with a direct line to their crypto funds. . They often recommend storing assets in an offline wallet, making commitments like this much more difficult.

Why does this keep happening?

Cybersecurity expert Steve Forbes commented on the high level of crypto theft that has occurred in the past two years, when assets like bitcoin hit record highs. He says:

It's no wonder attackers are targeting crypto exchanges. In many ways, it's the new banks that make this a modern take on a bank robbery with probably less risk and less effort. As the threat of a ransomware attack continues to grow across industries, encryption switches will be no exception.

Other major examples of cryptocurrency exchange theft include Mt. Gox and Coincheck in Japan.

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