Bitmart Confirms the $200 Million worth Crypto Loss Hack

Bitmart, a popular cryptocurrency exchange, was recently hacked, resulting in an estimated $200 million in losses. The hacker took over 20 tokens, including Shiba Inu, Binance Coin, and SafeMoon, and exchanged them for Ethereum on the decentralized exchange 1inch.

Bitmart has had a security breach

On December 4, security analysis firm Peckshield uncovered the claimed attack, indicating that whole token balances worth tens of millions of dollars have been steadily outflowed to an address currently designated as the “Bitmart Hacker.”

Peckshield estimated the losses at $100 million across several coins on Ethereum and the Binance Smart Chain at first. On Bitmart’s official Telegram channel, representatives addressed the suspicions, stating that the outflows of assets were simply routine withdrawals.

However, after a few hours, Bitmart’s CEO Sheldon Xia confirmed that the platform’s Ethereum and Binance Smart Chain hot wallets had suffered a “security compromise.”

The crypto exchange will “perform a thorough security review,” according to Xia, and withdrawals from the platform will be suspended till further notice. Bitmart is still trying to figure out how the hacker got the assets out of the hot wallet.

The hack, according to Peckshield, was a “straightforward instance of transfer-out, exchange, and wash.”

To make it harder to track the hijacked funds, the hacker used a decentralized exchange aggregator 1inch to convert the stolen monies to Ethereum by sending the assets to Tornado Cash, an Ethereum mixing service.

The affected Ethereum and Binance Smart Chain hot wallets only held a “tiny percentage” of the exchange’s assets, according to Bitmart. The company also stated that the other wallets are “safe and undamaged.”

The hacker took over 20 different tokens, including Binance Coin, SafeMoon, and Shiba Inu.

Another recent exploit on the decentralized finance technology BadgerDAO resulted in a $50 million loss on the bitcoin loan site Celsius.



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