Bitmart lost over $200 million in a hack that involved its hot wallets. Blockchain security and auditing company, Pecksfield first identified this issue and raised the alarm on social media about an imminent hot wallet vulnerability. Wallets involved are ones with ETH and BSC-based tokens.
The loss was initially estimated at $150 million by Bitmart, but after an investigation by PeckShield, the losses were estimated around $200 million.
The hack took significant amounts of SHIB, SAND, SAFEMOON and MANA, among others. The event caused a liquidation of large amounts of decentralized exchange which in turn affected the price of some tokens.
Bitmart acknowledged the situation in an announcement saying: “The affected ETH and BSC hot wallets are a small percentage of assets on BitMart. Our other wallets are secure and unharmed and now, a thorough security review is in progress and we will post updates as we progress”
The hackers moved the funds to other platforms with the aim of mixing the cryptocurrency taken. According to Peckshield, the hackers used 1inch, a DEX platform, to exchange all of the Binance Smart Chain and Ethereum tokens for ethereum, and then sent to Tornado.cash, an obfuscation protocol that allows less susceptible transactions.
This attack on the centralized exchange is devastating and as a result, withdrawals for all assets have been suspended until it conducts an investigation as well as a review of the platform’s security and vulnerabilities.
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