Bitrue suffered a $23 million hot wallet exploit, leading to a temporary suspension of all withdrawals while the company conducts additional security checks, but promised to fully compensate identified affected users.
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The cryptocurrency exchange, Bitrue, recently faced a massive security breach, resulting in a loss of around $23 million worth of various crypto assets. According to the announcement made by Bitrue on April 14, the hack was due to a hot wallet exploit, which allowed hackers to withdraw funds from the exchange.
Bitrue had to temporarily halt all withdrawals and conduct additional security checks to ensure the safety of its users’ funds. The exchange is set to reopen withdrawals on April 18, 2023, after conducting thorough security checks.
Bitrue has assured its users that it was able to address the matter quickly and prevent further draining of funds. The affected hot wallet accounted for less than 5% of the exchange’s overall funds, and the rest of the wallets remain secure and uncompromised.
Bitrue is conducting a thorough security review and promised to fully compensate all identified users who were affected by the hot wallet exploit.
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The currencies affected in the exploit include Ether, Shiba Inu, Quant (QNT), Gala, Holo (HOT), and Polygon (MATIC). Bitrue is one of the major centralized cryptocurrency exchanges, trading nearly $2 billion in crypto per day on average, according to data from CoinGecko. The company has faced security breaches in the past, losing nearly $5 million in Cardano (ADA) due to a hot wallet hack in 2019.
The increasing frequency of DeFi hacks over centralized exchange hacks is a growing trend. Hackers have been opting for DeFi protocols instead of traditional centralized exchanges in recent years.
According to data from Chainalysis, in the first three months of 2022, crypto exchange hacks accounted for just 3% of all crypto stolen, while 97% was taken from DeFi protocols.
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This trend indicates that security remains a crucial aspect of the crypto industry, and exchanges must ensure that their users’ funds are safe and secure at all times.