Home
News
- Bitmart has faced nefarious activity where some malicious actors were able to launder $196 million worth crypto assets
- The exchange announced that it is going to use its own funds and compensate the victims for losses emanating as a result of the incident
- The latest security breach was easily preventable only if the users had been educated enough to keep their assets safe externally
Bitmart, a real-time cryptocurrency services provider, was recently a target of vulnerabilities. The crypto platform has recently witnessed a major hack where the malicious actors were able to launder about $200 million through hot wallet. Notably the breach was first observed by PechShield, a blockchain security firm whose team revealed that nefarious third parties were able to initially transfer roughly $100 million through the Ether chain. And the flow of funds followed another concurrent act of laundering $96 million through the Binance Smart Chain (BSC) reserves.
Following such activities coming into light, financial regulators globally have been given even more firepower. However, following regulatory pressure and the voice of the community, Bitmart claimed that it will recompense the victims.
How did Bitmart respond to the event?
Following the hack, Bitmart pointed out that it took actions by shutting down multiple systems to limit any sort of immediate harm. The actions included halting token withdrawals and ceasing certain trading pairs. According to a spokesperson from the platform, the firm planned to continue to gradually restore its services but only following their security team’s through the testing process.
In addition to all those responses, a written response from the platform underscored that in order to bolster its native security infrastructure, the firm had replaced all of its token deposit addresses in relation to currencies like BTC, ETH, SOL, and other assets involved in the hack.
Moreover, the exchange also announced that it is going to use its own funds and compensate the victims for losses emanating as a result of the incident. According to the spokesperson, the firm is also talking to several project teams to confirm the most reasonable solutions, so no users’ assets would be harmed.
Bitmart’s recent hack was preventable
According to Raimundo Castilla, the CEO of Prosegur Crypto, the latest security breach was easily preventable only if the users had been educated enough to keep their assets safe externally. He further explained that hot wallets should be reserved just for the funds the individuals want to trade. This amount of money should have been guarded on cold wallets with an air-gapped system.
Castilla also highlighted that in order to prevent future incidents, platforms like Bitmart should employ a combination of innovative technologies coupled with rigid governance protocols.
Moreover, the exchange platform could have additionally employed an advanced multiparty computation (MPC) co-signing system that made use of a multisignature approval module.
Crypto ecosystem requires better security measures
Although the crypto ecosystem has witnessed notable growth over the past few years, it remained vulnerable to hacks and scams. Recently, before the Bitmart incident, BadgerDAO, the DeFi based protocol, had witnessed a loss of more than $50 million through exploits.
Besides, Avalanche blockchain’s security team also averted a multimillion-dollar exploit on the Avalanche Neutral Dollar (nUSD) metapool. This helped the chain to prevent miscreants from making their way with nearly $8 million worth of crypto assets.
