The CRYPTO Bitmart exchange was hacked, suffering a loss of nearly $ 200 million on various tokens.
Security researchers PeckShield first detected the cyber attack and estimated that the exchange suffered a loss of $ 100 million.
Further investigation by the team revealed a simultaneous hack of $ 96 million on the crypto exchange’s BSC reserves.
Bitmart representatives initially claimed the outings were routine withdrawals, calling reports of the hack “fake news,” Coin Desk reports.
However, Bitmart founder and CEO Sheldon Xia later confirmed the incident in a Twitter post: âWe have identified a large-scale security breach related to one of our ETH hot wallets and the ‘one of our BSC hot wallets. At this time, we are still concluding the possible methods used. The hackers were able to withdraw assets worth approximately $ 150 million. “
Xia added that the exchange “is undergoing a thorough security review” and all withdrawals are on hold until “further notice.”
PeckShield first noticed something was wrong around 7:30 p.m. UTC when it detected an excessive amount of outgoing transfers.
He discovered a range of tokens, which included tokens even like Shiba (SHIB), plus $ 500,000 in the USDC stablecoin.
Other affected altcoins included Binance Coin (BNB), Safemoon, BSC-USD, and BNBBPay (BPay).
Coins such as BabyDoge, Floki, and Moonshot were also compromised in the hack.
Other observers have indicated that funds have also been withdrawn from the Binance Smart Chain blockchain.
The funds have been sent to the Ethereum Tornado Cash mixing service, which will make tracking more difficult, reports The Block Crypto.
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The hack follows a Bitcoin price collapse where the cryptocurrency fell 16.5% on Saturday, losing a fifth of its trillion dollar value.
The drop comes less than a week after Bitcoin hit a record high of over $ 69,000.
The steep fall wiped out an estimated $ 300 billion in value from the combined crypto market in just two days.
Bitcoin, the number one cryptocurrency, reached a low market value of $ 51,808.54, according to figures from CoinDesk.
5 risks of crypto investments
BELOW we have put together five risks of investing in cryptocurrencies.
- Consumer protection: Certain investments announcing high returns based on crypto assets may not be subject to regulation beyond anti-money laundering requirements.
- Price volatility: The high volatility of crypto-asset prices, combined with the difficulties inherent in a reliable valuation of crypto-assets, puts consumers at high risk of loss.
- Product complexity: The complexity of some crypto-asset related products and services can make it difficult for consumers to understand the risks. There is no guarantee that cryptoassets can be converted back to cash. The conversion of a crypto-asset into cash depends on the existing demand and supply in the market.
- Costs and fees: Consumers should consider the impact of fees and charges on their investment, which may be higher than those of regulated investment products.
- Promotional material: Companies may overestimate product returns or underestimate the risks involved.
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