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- Hotbit just suffered a severe cyber attack starting around 08:00 PM UTC, April 29, 2021
- The hackers did manage to compromise the platform’s user database.
- The exchange claims it exceeds two million registered users and has a huge service system architecture of more than 200 servers online.
A cryptocurrency exchange Hotbit, with two million users worldwide, had to shut down its services following a severe cyber attack. The Chinese platform says it needs to perform a comprehensive inspection, which could last one to two weeks.
A notice on Hotbit’s portal reads, “Hotbit just suffered a serious cyber attack starting around 08:00 PM UTC, April 29, 2021, which led to the paralyzation of a number of some basic services.”
The hackers were unsuccessful in gaining access to Hotbit’s wallets. But, they did manage to compromise the platform’s user database. As such, the Hotbit team advised customers to disregard any communication from entities claiming to be representatives of the exchange.
Hacker deleted the user database
The crypto exchange platform said the hackers tried to get into the Hobit’s wallets, but the attempt was identified and stopped by the platform’s risk control system. The exchange claims, as per Bitcoin.com, that it is about to exceed two million registered users and has a huge service system architecture of more than 200 servers online. This ensures security.
It said the Hotbit team would completely rebuild all services. But following the hack announcement, crypto transfers were spotted from Hotbit’s addresses. The platform pointed out that the transfers resulted from them “creating a new cold wallet.”
The exchange explained that the hacker deleted the user database after failing to obtain assets. It warned the attacker has already gained access to the database. Users’ registered phone numbers, email addresses, and asset data may have been leaked.
Pending trading orders canceled
To prevent losses, Hotbit revealed that pending trading orders are canceled. Moreover, the platform promises to bear any losses stemming from its exchange-traded funds listed on Hotbit during the duration of the maintenance.
The maintenance is expected to last for seven to 14 days. But Hotbit’s users have taken to social media platforms like Telegram to express their concerns about the timeframe for the maintenance. Fears over the incident being an exit scam by the Hotbit team are palpable.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
