Crypto exchange from Singapore, Bitrue, admitted that the system was hacked. As a result, virtual dedemit managed to steal crypto worth US $ 23 million, including ETH, QNT, GALA, SHIB, HOT and MATIC. According to Bitrue, the withdrawal system was suspended until April 18, 2023.
“We have identified a short exploit in one of our hot wallets at 07:18 (UTC), April 14, 2023. We were able to quickly address this issue and prevent further exploitation of the funds. We take this matter seriously and are currently investigating the situation,” said Bitrue in his official announcement on Twitter, Friday (14/4/2023) at 16.42 WIB.
Through the announcement, Bitrue confirmed that one of its hot wallets had been hacked, and a large number of Shiba Inu tokens, as well as Polygon and other cryptocurrencies, had been withdrawn from the system. The hacker has even started selling the stolen crypto.
According to a Twitter post from Bitrue, an unknown individual or group exploited one of their crypto wallets.
The hackers managed to get away with about US$23 million worth of crypto. The list includes, according to PeckShieldAlert, 22.5 billion Shiba Inu, 320 ETH, 173,000 QNT, 46.4 million GALA, 756.15 million HOT and 310,000 MATIC.
Bitrue also ensured that the hacked wallet only held 5 percent of the total amount of crypto held by the exchange. Other wallets are not affected.PeckShieldAlert reports that the previously mentioned amounts of SHIB, GALA, QNT, and MATIC sold for around 8,540 ETH, which pushed QNT’s price down 11 percent in the three hours following the sale.
In 2019, Bitrue experienced a similar incident, in which around US$5 million Ripple (XRP) and Cardano (ADA) were drained, due to a vulnerability in their internal audit process, allowing attackers to access user accounts.
Why Can Hot Wallets Be Hacked?
A hot wallet is a type of crypto wallet that is constantly connected to the Internet and can be used to send, receive and store crypto assets. Meanwhile, a cold wallet is a type of crypto wallet that is stored offline and is safer from hacker attacks, because it is not always connected to cyberspace.
Hot wallets can be hacked because they are connected to the Internet, and thus more vulnerable to hacker attacks.
In the case of a Bitrue hack, hot wallets are usually used to facilitate trading and fast withdrawals, so they must always be connected to the network and ready to use. Therefore, hot wallets on crypto exchanges are easy targets for hackers looking for ways to steal crypto assets.
To reduce the risk of hacking attacks, exchange managers usually separate most of their crypto assets in cold wallets which are stored offline and are more secure. Apart from that, they also implement various security measures such as two-factor authentication, data encryption and active monitoring to protect their hot wallets.
Nonetheless, the risk of hacking is always there, and it is important for users to understand those risks and take the necessary steps to protect their crypto assets, such as choosing a trusted crypto exchange and changing passwords regularly.
In the following possibilities a number of factors cause bitrue to be hacked. First, bad security. If an exchange doesn’t have strong enough security, then hackers can take advantage of this weakness and get into the system.
If he manages to access the system, then they can easily access the hot wallet and steal the crypto stored in it.
Second, human error. Employees or staff who are less thorough and do not follow security procedures can make mistakes that hackers can take advantage of. For example, staff who accidentally give confidential information such as passwords or access to systems to unauthorized people.
Third, Phishing. Hackers can try to send fake emails that look like emails from real exchanges and ask victims to enter confidential information such as passwords or access to accounts. If the victim enters this information then the hacker can easily get into the system and steal crypto from the hot wallet.
Fourth, system vulnerabilities: Sometimes, exchanges run into vulnerabilities in their systems which hackers can exploit to break into systems and steal crypto from hot wallets.
What is Bitrue?
Bitrue is a cryptocurrency exchange platform that allows users to buy, sell and trade various digital assets. The platform was launched in 2018 in Singapore and has since become a popular choice among cryptocurrency enthusiasts, especially in Asia.
Bitrue offers a variety of cryptocurrencies to trade, including Bitcoin, Ethereum, Ripple and many others. It also offers a variety of trade pairs and supports spot trading and margin trading. Apart from trading, Bitrue also provides other services, such as staking and lending, to help users earn interest on their crypto assets.
Bitrue claims one of the main ones is its focus on security to avoid being hacked. The platform employs advanced security measures, such as two-factor authentication and encryption, to ensure that users’ funds are kept safe. Bitrue also has a user-friendly interface and provides excellent customer support to help users with any questions or problems they may have.
Bitrue also offers a mobile app available for iOS and Android devices, which allows users to trade and manage their cryptocurrency assets on the go. This app provides a seamless user experience, with an intuitive interface and easy-to-use features.
Another striking aspect of Bitrue is its commitment to transparency. The platform regularly publishes reports on trading volume, market trends and other key metrics to keep users informed and engaged.
Bitrue has also launched its own native cryptocurrency, known as Bitrue Coin (BTR). BTR is an ERC-20 token that can be used to pay trading fees on the Bitrue platform, as well as to earn rewards through various promotions and loyalty programs.
