Bitrue Loses Almost $23 Million Worth of Crypto in Hot Wallet Exploit

Bitrue, a Singapore-based centralized cryptocurrency exchange, has experienced a hot wallet exploit.

According to the announcement shared on April 14th, the crypto exchange has “identified a brief exploit” in one of its hot wallets.

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The company claims that shortly after noticing the malicious activity, it “addressed the matter quickly and prevented the further exploit of funds.”

However, despite the quick reaction from the cryptocurrency exchange, malicious actors managed to steal approximately $23 million in various cryptocurrencies, including Ether (ETH), Polygon (MATIC), Quant (QNT), Shiba Inu (SHIB), Holo (HOT) and Gala (GALA).

In the announcement, the company noted:

The affected hot wallet only holds less than 5% of our overall funds. The rest of our wallets remain secure and have not been compromised.

Following the exploit, Bitrue has now temporarily suspended “all withdrawals.” However, the firm noted that by April 18th, users should be able to withdraw their funds.

At the end of its announcement, Bitrue highlighted that “all identified users who are affected by this incident will be compensated in full.” Moreover, the firm asked its customer for their patience while thanking them for their massive support:

We seek your understanding and patience at this time. <...> We are committed to maintaining transparency throughout this process, and thank you for your continued support.

Crypto community members on Twitter were quick to comment on Bitrue’s announcement. Many crypto enthusiasts questioned the authenticity of the exploit, noting that it may have been an insider job.

Other users doubted the possibility of hacking hot wallets, while others claimed the exploit happened four days ago.

On April 13th, another malicious actor exploited Yearn Finance and minted one quadrillion Yearn Tether (yUSDT) from just $10,000. Afterward, the hacker swapped yUSDT to other stablecoins and was able to get away with $12 million in crypto.

by Gile K. - Crypto Analyst, BitDegree

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• Source: https://www.bitdegree.org/crypto/news/bitrue-loses-almost-23-million-worth-of-crypto-in-hot-wallet-exploit