Bitrue, a popular trading platform, has become the latest victim of a hot wallet exploit, resulting in the loss of nearly $23 million in cryptocurrency assets.
On April 14, 2023, Cointelegraph reported that the company announced that all withdrawals had been temporarily halted due to a "brief exploit" of its hot wallet, which affected less than 5% of the exchange's total funds.
Popular Altcoins Impacted by Exploited Hot Wallet
Bitrue said in a statement that it acted quickly to prevent further funds from being drained and that the rest of its wallets are secure and uncompromised.
2/4: The attackers were able to withdraw assets worth approximately 23M USD in ETH, QNT, GALA, SHIB, HOT and MATIC. The affected hot wallet only holds less than 5% of our overall funds. The rest of our wallets remain secure and have not been compromised.
— Bitrue (@BitrueOfficial) April 14, 2023
It will, however, conduct a thorough security review and keep its users updated as it progresses.
Following additional security checks, the company expects to reopen withdrawals on April 18.
Popular altcoins affected by the exploited hot wallet included Ether, Shiba Inu, Quant (QNT), GALA, Holo (HOT), and Polygon. Bitrue stated that it would fully compensate all identified users affected by the hack.
Crypto Exchange Vulnerabilities
Despite advances in security measures, the Bitrue hack highlights the ongoing vulnerabilities that cryptocurrency exchanges face.
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Hot wallets, which are online, are more vulnerable to hacking than cold wallets, which are offline. As a result, when using hot wallets, investors and traders must exercise caution.
Finance education firm CFI notes that one of the most significant challenges confronting a hot wallet is the security breach of private keys stored on the internet and in the wallet's browser.
Furthermore, hot wallet users should keep a small portion of their cryptocurrency funds on such platforms to deter cybersecurity threats.
Latest on Crypto Breaches
Security breaches have plagued the cryptocurrency industry in recent years, with several high-profile cases.
In 2018, the Japanese cryptocurrency exchange Coincheck was hacked, resulting in the loss of over $500 million in cryptocurrency, prompting regulators to tighten their grip on the industry.
Crypto.com's systems were hacked in January 2022, according to CEO Kris Marszalek, who confirmed the security incident. Several users' accounts were compromised as a result of the incident.
In February 2022, crypto hackers targeted Wormhole, one of the most popular token bridges connecting Ethereum and Solana, amassing $320 million in cryptocurrency.
Cryptopia, a New Zealand-based exchange, went bankrupt after losing nearly $17 million in a hack in 2019.
What's Next?
Bitrue's hack is yet another reminder that cryptocurrency exchanges must prioritize security. As the industry expands, security measures must be constantly improved to protect investors' assets.
The hack may have ramifications for the broader cryptocurrency market, particularly the value of the affected altcoins. Investors may become wary of the affected cryptocurrencies, causing their prices to fall.
Finally, the Bitrue hot wallet exploits, which resulted in the loss of $23 million in various cryptocurrency assets, serve as a stark reminder of the ongoing vulnerabilities that cryptocurrency exchanges face.
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