Hacked Crypto Exchange BitMart to Compensate All Victims

BitMart, the crypto exchange that was hacked recently, is going to compensate all the victims from its own funds, the platform’s Founder and CEO, Sheldon Xia announced on Monday.

"BitMart will use our own funding to cover the incident and compensate affected users. We are also talking to multiple project teams to confirm the most reasonable solutions such as token swaps. No user assets will be harmed," Xia wrote.

The crypto exchange was hacked on Saturday with a major ‘security breach’, resulting in the theft of $196 million worth of cryptocurrencies. Hackers stole $100 million worth of digital currencies on the Ethereum Ethereum Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Read this Term blockchain, while the rest $96 million was stolen from Binance Smart Chain.

The Initial Denials

The attack was first reported on Sunday by the crypto-security firm, Peckshield. It pointed out outflows of entire token balances, some worth tens of millions of dollars, from BitMart wallet addresses.

However, the exchange slammed Peckshield’s claims initially, saying that the outflows were routine withdrawals. But, the CEO publicly confirmed the hack hours later following the denial.

“In response to this incident, BitMart has completed initial security checks and identified affected assets. This security breach was mainly caused by a stolen private key Private Key Private keys or secret keys are defined as a string of characters used with an algorithm to both encrypt and decrypt code. The primary application of this alphanumeric key is designed to send or access cryptocurrency securely.As its name suggests, secret keys are only shared with the key’s generator, helping provide a layer of security against hackings or theft.Private keys are stored in digital wallets. When a cryptocurrency transaction is initiated, the wallet generates a digital signature usi Private keys or secret keys are defined as a string of characters used with an algorithm to both encrypt and decrypt code. The primary application of this alphanumeric key is designed to send or access cryptocurrency securely.As its name suggests, secret keys are only shared with the key’s generator, helping provide a layer of security against hackings or theft.Private keys are stored in digital wallets. When a cryptocurrency transaction is initiated, the wallet generates a digital signature usi Read this Term that had two of our hot wallets compromised. Other assets with BitMart are safe and unharmed,” Xia wrote on Twitter on Monday.

The attacker used a decentralized exchange (DEX) aggregator, 1inch to swap the stolen tokens into Ether, and then used a secondary address to send the Ether to a privacy mixer, Tornado Cash to make them harder to track.

Moreover, he confirmed that the team is now in the process of retrieving security setups and operations, asking time for making ‘proper arrangements’. Furthermore, he assured that the exchange will restart deposit and withdrawals from December 7, the details of which will be announced ‘soon’.

Meanwhile, crypto exchanges remain the hot targets of cybercriminals. Last month, the DeFi lending and borrowing platform, Cream Finance lost $130 million to hackers in a flash loan attack.