BitMart exchange hacked

[BitTalk21]

https://www.theblockcrypto.com/linked/126367/crypto-exchange-bitmart-reportedly-hacked-for-100-million

$150 million loss , all withdrawals in bitmart are suspended for now.

Storing funds in exchanges are not safe.   

[Slow death]

 

I thought this was some lie and so I did a google search, it seems that hackers managed to gain access to private keys from two hot wallets, how was this possible? is it internal work? maybe some employee is working with a hacker, now let's hope the exchange owners return people's money and don't take the time to do it

[Darker45]

I thought this was some lie and so I did a google search, it seems that hackers managed to gain access to private keys from two hot wallets, how was this possible? is it internal work? maybe some employee is working with a hacker, now let's hope the exchange owners return people's money and don't take the time to do it

They indeed denied and called it a lie at first. Earlier, people from BitMart itself declared the large withdrawals from their hot wallets as part of their exchange's normal operation. They even declared the hack as fake news. This was when PeckShield, a security firm, first raised the alarm. But then BitMart's CEO itself later on admitted that it was indeed a hack.

This is the same old story. A centralized exchange gets hacked, locks platform's functions and accounts, staff issues denial, reassures users of funds safety, and so on and so forth only to end up admitting it.

As to how the security breach became possible, your guess is as good as mine. As for the money, that was rather huge. Users should be hoping against hope.

[condoras]

I thought this was some lie and so I did a google search, it seems that hackers managed to gain access to private keys from two hot wallets, how was this possible? is it internal work? maybe some employee is working with a hacker, now let's hope the exchange owners return people's money and don't take the time to do it

Anything can happen. If they have stored their keys in digital form or shared them between the company's e-mails, a hacker can obtain them. However, it can be an internal hack or a theft/ scam from the owners. For the moment, nobody knows with certainty. The only sure thing here is that the clients/ holders there will lose their coins and nobody can assure them that they will get them back.

[Taskford]

I thought this was some lie and so I did a google search, it seems that hackers managed to gain access to private keys from two hot wallets, how was this possible? is it internal work? maybe some employee is working with a hacker, now let's hope the exchange owners return people's money and don't take the time to do it

They indeed denied and called it a lie at first. Earlier, people from BitMart itself declared the large withdrawals from their hot wallets as part of their exchange's normal operation. They even declared the hack as fake news. This was when PeckShield, a security firm, first raised the alarm. But then BitMart's CEO itself later on admitted that it was indeed a hack.

This is the same old story. A centralized exchange gets hacked, locks platform's functions and accounts, staff issues denial, reassures users of funds safety, and so on and so forth only to end up admitting it.

As to how the security breach became possible, your guess is as good as mine. As for the money, that was rather huge. Users should be hoping against hope.

Maybe they twist it so that they cannot create panic that's why they never confirm it yet, but since this was already confirm then they confirm about what's happening on their exchange and it's really strange how hackers do it and some other think about that this is another series of inside job again.

So hopefully people should realize by now that exchange will never be a good option to store our balances.

[bL4nkcode]

With a lot of ways on how to trade such coins, they're completely cant do anything with the hacked funds as it was swap then sent to mixers already.

Good thing they able to reimbursed the hacked amount to their  users.

[Darker45]

So hopefully people should realize by now that exchange will never be a good option to store our balances.

Uh-uh, I'm afraid this is another story of hoping against hope. Just as a user has realized that and has withdrawn all his funds from a centralized exchange, another has just created an account, passed the KYC, and made a deposit.

The short history of crypto is replete with stories of hacked exchanges, and not just shady and unpopular ones but even top and most trusted ones. And yet, billions are still stored in them.

The risk does not just involve hacking. There's the possibility of an account locked, withdrawal frozen, inside job, exit scam, lose of access like the story of QuadrigaCX, and so on. There are numerous reasons why one should avoid centralized exchanges and yet...

[condoras]

So hopefully people should realize by now that exchange will never be a good option to store our balances.

Uh-uh, I'm afraid this is another story of hoping against hope. Just as a user has realized that and has withdrawn all his funds from a centralized exchange, another has just created an account, passed the KYC, and made a deposit.

The short history of crypto is replete with stories of hacked exchanges, and not just shady and unpopular ones but even top and most trusted ones. And yet, billions are still stored in them.

The risk does not just involve hacking. There's the possibility of an account locked, withdrawal frozen, inside job, exit scam, lose of access like the story of QuadrigaCX, and so on. There are numerous reasons why one should avoid centralized exchanges and yet...

And yet, is the simpler (and mainstream) way to exchange your coins to fiat and vice versa. Exchanges are companies therefore "anything" can happen, like all the other companies. Even if we don't like it at all, even if BTC (crypto in general) means freedom and decentralization, centralized exchanges and KYC's/ AML's will be there and they will have massive traffic aka funds, clients, power... Since we can't avoid it, the "only" safety net is to keep the minimum amount of funds that you can. Better to pay fees than risking to lose your entire coin/ fund portfolio.

[hugeblack]

If these allegations are true, and with the market capacity estimated at about 1,049,207,085, hacked amount represents about 14% of the market capacity. It is kept in the hot wallet, which is considered risky, as most of the trading volumes will be inside the platform.
I do not know, but this means that the quantities covered are much less than that, and with the increase in withdrawal requests, a large number of them may not be able to obtain money.

In general, it should be remembered, not your keys, not your money, and you do not trust anonymous exchanges.

[stompix]

Hmmmm...

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 that had two of our hot wallets compromised. Other assets with BitMart are safe and unharmed.

Did they use the same key for both their hot wallets?
I know BSC is basically a copy of Etherum and you can recover funds sent by accident to the other chains dress but they did use identical hot wallets for storing the exchange coins? This is a bit lazy, and look where it got them to

If these allegations are true, and with the market capacity estimated at about 1,049,207,085, hacked amount represents about 14% of the market capacity. It is kept in the hot wallet, which is considered risky, as most of the trading volumes will be inside the platform.
I do not know, but this means that the quantities covered are much less than that, and with the increase in withdrawal requests, a large number of them may not be able to obtain money.

The daily volume might be a false indicator, it can be done with /10 or with 10x of the coins sitting on that exchange depending on how active the traders are or if it's used just as a liquidation gateway for some tokens that don't have volume anywhere else.

Either way, they've said they can cover for the loss, a bit surprising be honest but at least users will not be dragged into this.

[sunsilk]

In general, it should be remembered, not your keys, not your money, and you do not trust anonymous exchanges.

This has always been the case.

But with the bunch of new comers that would think it's safe to keep their funds onto an exchange since it is secured and thinking that they've got the best security that would make them feel assured.

That would make an unstoppable reminder that people should never keep their assets into any exchange, popular or not.

[stomachgrowls]

In general, it should be remembered, not your keys, not your money, and you do not trust anonymous exchanges.

This has always been the case.

But with the bunch of new comers that would think it's safe to keep their funds onto an exchange since it is secured and thinking that they've got the best security that would make them feel assured.

That would make an unstoppable reminder that people should never keep their assets into any exchange, popular or not.

People never ever learn until they do wrekt up their asses or simply lost up their money.Its never been ideal on storing up your coins on an exchange
not even on popular ones.How much more into those not known or not really that popular?

Risk is really very high and you shouldnt crossed out the probabilities that hacks could really happen on an exchange which it isnt surprising.

So another exchange platform bites of the dust and this is always been a honey spot ground for those hackers yet they know that
they could pull off  millions of dollars.

[Natalim]

Whatever the results of their investigation, they should make sure that they'll be able to refund the lost funds of the users. I remember when Binance was hacked before, they also lose millions of dollars in crypto but they said it's "SAFU", meaning the funds are safe because they set up a certain fund which is insurance in their own way to cover the losses in cases a hacked will happen.

[adzino]

I have heard about this. They moved their coins to a Dex and then mixed it through a mixer service. More reason not to store your funds in any exchange. You never know when they might get hacked. No matter how much secure they claim to be, they are never secure enough. Hackers always finds a way to breach their security. I wonder how they managed to steal the private keys to their hot wallet... Maybe an inside job? But at least they are refunding all their users using their own funds.

[Darker45]

So hopefully people should realize by now that exchange will never be a good option to store our balances.

Uh-uh, I'm afraid this is another story of hoping against hope. Just as a user has realized that and has withdrawn all his funds from a centralized exchange, another has just created an account, passed the KYC, and made a deposit.

The short history of crypto is replete with stories of hacked exchanges, and not just shady and unpopular ones but even top and most trusted ones. And yet, billions are still stored in them.

The risk does not just involve hacking. There's the possibility of an account locked, withdrawal frozen, inside job, exit scam, lose of access like the story of QuadrigaCX, and so on. There are numerous reasons why one should avoid centralized exchanges and yet...

And yet, is the simpler (and mainstream) way to exchange your coins to fiat and vice versa. Exchanges are companies therefore "anything" can happen, like all the other companies. Even if we don't like it at all, even if BTC (crypto in general) means freedom and decentralization, centralized exchanges and KYC's/ AML's will be there and they will have massive traffic aka funds, clients, power... Since we can't avoid it, the "only" safety net is to keep the minimum amount of funds that you can. Better to pay fees than risking to lose your entire coin/ fund portfolio.

Surely, there are safer and more secured alternatives to centralized exchanges if we are talking about exchanging cryptos with fiat and vice versa. If we are talking about token or coin conversion, on the other hand, one doesn't have to create an account and submit KYC documents to centralized exchanges either. Actually, there are a number of non-custodial wallets that are offering swaps or coin conversion. So if one is not really an active trader, one doesn't have to park funds in centralized exchanges.

[sunsilk]

In general, it should be remembered, not your keys, not your money, and you do not trust anonymous exchanges.

This has always been the case.

But with the bunch of new comers that would think it's safe to keep their funds onto an exchange since it is secured and thinking that they've got the best security that would make them feel assured.

That would make an unstoppable reminder that people should never keep their assets into any exchange, popular or not.

People never ever learn until they do wrekt up their asses or simply lost up their money.Its never been ideal on storing up your coins on an exchange
not even on popular ones.How much more into those not known or not really that popular?

Risk is really very high and you shouldnt crossed out the probabilities that hacks could really happen on an exchange which it isnt surprising.

So another exchange platform bites of the dust and this is always been a honey spot ground for those hackers yet they know that
they could pull off  millions of dollars.

For many times that we've seen a lot of exchanges being hacked, still people never learn. But it's all due to newbies coming to the market and they're not aware of this precautionary measure.

Learning their experience on this hack, those affected ones is quite expensive if they've got their all assets on it. But to those that have mild affection and they don't have most of their assets there, they'll get themselves hardware wallets.

[sheenshane]

It's resumed now!  All withdrawals are now available.
BitMart Resumes Ether Withdrawals and Deposits, Three Days After $200M Hack.

It was Twitted by Sheldon Xia the CEO of that exchange.

Sad to say the hacker stole $100 million of Ethereum based cryptocurrencies.  Who will be the next? 
All centralized exchange should tighten their security and always have funds spare for replacement.

[PX-Z]

BitMart
Sad to say the hacker stole $100 million of Ethereum based cryptocurrencies.  Who will be the next? 
All centralized exchange should tighten their security and always have funds spare for replacement.

All exchanges is the target, even binance was got screwed even though they hired people with strong fundamentlas in security. As for the insurance, yes, they should have, they're business that is prone to hack and lost funds.

[arabspaceship123]

After every short time we're reading articles about depositors lost money because exchanges got hacked. People shouldn't store their cryptocurrencies on exchanges because it isn't safe or secure.

https://www.theblockcrypto.com/linked/126367/crypto-exchange-bitmart-reportedly-hacked-for-100-million

$150 million loss , all withdrawals in bitmart are suspended for now.

Storing funds in exchanges are not safe.