BitMart CEO Pledges To Compensate Victims Affected By Nearly $200 Hack

BitMart Loses $196 Million

BitMart suffered a security breach on Sunday (Dec. 5, 2021), with hackers stealing close to $200 million from the platform. Investigation revealed that hot wallets on the Ethereum Binance Smart Chain (BSC) blockchains were both compromised.

Blockchain security company PeckShield, was the first to alert BitMart about the incident. Describing the attack, PeckShield said that the hacker’s activity was straightforward, which was a “transfer-out, swap, and wash.”

While Xia confirmed the attack and said that the exchange lost about $150 million worth of tokens, PeckShield’s investigation showed that an estimated $196 million was stolen. About $100 million in assets was lost on the Ethereum blockchain, while $96 million worth of tokens were stolen on BSC.

Furthermore, a total of 20 tokens have been stolen from the compromised hot wallets. Some of them include Stack, Floki, Moonshot, BabyDoge, BNB, BSC-USD, X2P, ZOE, among others. Meanwhile, BitMart CEO Xia in response to the hack initially said that the exchange was suspending the withdrawal function until further notice.

Tweeting on Monday (Dec. 6, 2021), Xia stated that the result of the security checks conducted by the platform showed that the breach happened as a result of a stolen private key which caused the hot wallets to be compromised.

The BitMart chief also said deposit and withdrawals on the platform could commence on December 7, 2021, but added that details will be released soon. Xia further mentioned that users who were affected by the hack will be repaid using the exchange’s funds

“BitMart will use our own funding to cover the incident and compensate affected users. We are also talking to multiple project teams to confirm the most reasonable solutions such as token swaps. No user assets will be harmed.”

Huobi and Shiba Inu Show Support for BitMart Incident

While BitMart is trying to recover from the loss, the crypto community has rallied to help the platform. Cryptocurrency exchange giant Huobi said that it was going to monitor the inflow of assets into the exchange and report if it notices any stolen tokens.

The Shib Community also pledge to support BitMart, stating:

“Even though the core of our project is decentralization, we want to show our support and give some love to our friends at BitMart Exchange, who are already working hard to fix the security incident that happened yesterday.”

Meanwhile, decentralized exchanges have also had their fair share of hack incidents in recent times. Earlier in December, DeFi protocol BadgerDAO suffered an exploit. Although the platform suspended smart contracts to prevent further withdrawals, the stolen tokens were worth over $120 million in assets, according to PeckShield.

Crypto lending firm Celsius Network, later stated that it was affected by the BadgerDAO hack. The platform reportedly lost about $51 million in the exploit. Celsius added that it was working with the Badger team to recover funds lost on the DeFi platinum.

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