Bitcoin brokerage gets hacked, loses nearly R$1 billion and blocks withdrawals

The cryptocurrency broker BitMart was hacked on Saturday night (4) and lost at least $150 million in cryptocurrencies, around 848 million reais. According to the company, hot Ethereum and Binance Smart Chain (BSC) wallets were affected.

The company said in a blog post that it is investigating what happened. the platform “identified a large-scale security breach related to one of their Ethereum and BSC wallets”. The text confirmed that around $150 million in funds were lost due to the hack.

“We identified a massive security breach affecting one of our ETH wallets and one of our BSC wallets. We are continuing to work on identifying possible methods of attack. The affected ETH and BSC portfolios contained a small percentage of our assets; the rest of the portfolios remain insured. We are suspending withdrawals until further notice”, said the founder and CEO of BitMart, Sheldon Sia.

Security company identified attack

The attack on the brokerage was first identified by security and data analysis firm Peckshield, which initially identified a suspicious transfer of approximately $100 million. A further investigation by the security team revealed theft of over $96 million.

According to the security company, hackers have stolen at least 20 cryptocurrencies, including Binance Coin (BNB), Safemoon, BSC-USD and BPaу. Hackers also stole a significant amount of meme coins such as BabуDoge, Floki and Moonshot.

Broker denied attack

The broker initially denied information about the hack. On the platform’s Telegram channel, users were assured that their funds were safe, and the news about the security issue was called “false”, then the company confirmed the attack and blocked withdrawals.

The broker’s founder and CEO, Sheldon Xia, confirmed that the portfolios were hacked. According to him, the loss was $150 million.

“We discovered a major security breach involving one of our wallets. At the moment, we are still discovering the possible attack vector. Hackers managed to withdraw $150 million”, he said.

Blocked withdrawals

Through analysis on the blockchain, security analysts have identified that hackers are using decentralized brokerages like 1inch to sell the stolen funds.

The brokerage has suspended withdrawals and said it will only release it when the situation is resolved. A BitMart address shows a constant stream of tokens for an address titled “BitMart Hacker” in Etherscan.

The company said the stolen funds are a “small percentage of its assets” and all other wallets are “safe and untouched”.

“We are conducting a full security review and will post updates as we progress.”

we are temporarily suspending withdrawals until further notice. We ask for your understanding and patience in this situation. Thank you very much.

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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