Bitmart Suffers 200 Million Dollars Hack

2021-12-06 23:50:21
Bitmart Suffers Cyber Attack

Crypto exchange Bitmart suffered a hack involving hot wallets and loses more than 200 million dollars. According to Peckshield, a security and auditing blockchain firm, the hacker targeted wallets mainly with BSC and ETH coins.

The initial estimate by Bitmart was $150 million in losses. However, the detailed investigation by Peckshield reveals that the losses are somewhere above $200 million.

 

Aside from ethereum and binance, the hacker/s took a substantial amount of other tokens as well, including SHIB, SAND, MANA and SAFEMOON.

Due to the fact that these exchanges usually liquidate large sums, the hack even affected the price of several tokens.

And this is nothing new, considering that ‘crypto heists’ of this magnitude almost never fail to influence the price of certain digital coins.

The affected ETH hot wallet and BSC hot wallet carries a small percentage of assets on BitMart and all of our other wallets are secure and unharmed. We are now conducting a thorough security review and we will post updates as we progress.Bitmart | Official Statement

According to the investigation report, the hacker/s transferred the crypto funds to a different crypto platform. The purpose of this is to mix the stolen crypto, and exchange it for different, usually more stable currencies.

Consequently, the attacker used 1inch to exchange all of the Ethereum (ETH) and Binance Smart Chain (BSC) crypto tokens to Ethereum. After doing so, the hacker sent the Ethereum funds to Tornado.cash.

For those not familiar with this platform, Tornado.cash is the go-to solution for hackers whenever a crypto-heist like this one occurs. That is since this Tornado.cash is an obfuscation protocol that is very difficult to trace.

DeFi Attacks Are Trending

Looking back at the long list of crypto-attacks in recent months, it is safe to assume that the 200 million dollars hack on Bitmart is one of the biggest to date. Regardless, the increase of attacks on DeFi platforms is definitely on the rise.

This results in many crypto exchanges taking things seriously, and drastically improving their defences. Unfortunately, it usually needs something like this to happen for the crypto exchanges to increase security.

This is the case with Bitmart as well. At the moment, Bitmart is in the process of conducting a full security review.

In addition to the investigation audit, the crypto exchange suspended withdrawals for every asset on the platform.

All Bitmart can do right now is wait and hope that the hacker will ask for a ransom. Considering that it is not unknown for crypto hackers to ask for ransomware, in exchange for the stolen crypto funds.

Whatever, the case, this should only serve as a lesson for all involved in the decentralized finance industry.

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