The Singapore-based crypto exchange Bitrue has fallen victim to a hacking attack that resulted in a loss of around $23 million worth of ether and other cryptocurrencies. Bitrue reported on Twitter that it had identified a “brief exploit” in one of its hot wallets, which led to the theft. The platform was able to prevent further transfers of funds and has temporarily suspended withdrawals until Tuesday, April 18th, to conduct additional security checks. Bitrue has promised to compensate affected users in full and assures customers that it is taking the hacking attack seriously.
This is not the first time that Bitrue has been hacked. In July 2019, the exchange lost around $4.7 million in XRP and ADA when the perpetrators compromised the accounts of dozens of users. The attack on Bitrue follows the recent hacking of South Korean crypto exchange GDAC, which lost more than $13 million when hackers took control of some of its hot wallets on April 9th. In March, over $1.5 million in bitcoin were stolen from crypto ATM manufacturer General Bytes.
Hacking in the crypto industry is unfortunately becoming increasingly common. According to a report from Atlas VPN, cyber attacks on financial services increased by 118% in 2021, with crypto exchanges and DeFi platforms being the most targeted. Hacking attacks can be devastating for both the exchange and the customers who lose their funds. It is therefore essential for exchanges to constantly review their security procedures and ensure that they are as robust as possible.
Bitrue’s announcement of compensation for affected users is a positive step, as it shows the exchange taking responsibility for the security breach and attempting to make amends. It is essential for exchanges to be transparent with their customers in the event of a hack and to provide regular updates on the progress of any investigations. This helps to maintain customer trust and confidence in the platform, as well as demonstrating a commitment to security.
Critics of cryptocurrencies often highlight the issue of security breaches as a major drawback of the industry. While it is true that hacks and thefts are a risk, it is important to bear in mind that traditional financial institutions are also vulnerable to cyber attacks. According to research from UK Finance, there were over 1 million cases of fraudulent activity in the UK banking sector in 2020, resulting in losses of £479 million. It is therefore not just the crypto industry that needs to prioritize security, but the financial sector as a whole.
Overall, the hacking attack on Bitrue is a reminder of the importance of security in the crypto industry. Exchanges must constantly review and update their procedures to ensure that they are as secure as possible. While hacks and thefts are always a risk, exchanges can minimize this risk by being transparent with their customers, taking responsibility for security breaches, and compensating affected users. As the crypto industry continues to grow, it is essential that exchanges and other platforms prioritize security to maintain the trust and confidence of their customers.
