Bitrue reported that a hot wallet vulnerability allowed hackers to withdraw many cryptocurrencies worth close to $23 million.
In response to a “brief exploit” of its hot wallet, Bitrue briefly suspended all withdrawals on April 14. On April 18, 2023, the company anticipates reopening withdrawals following additional security tests.
According to Bitrue, it was able to address the problem immediately, halting additional financial loss. Less than 5% of the exchange’s total funds were contained in the hot wallet that was compromised.
All identifiable users who were harmed by the event would receive full compensation, exchange executives guaranteed. The impacted cryptocurrencies on the attacked hot wallet, according to the notification, include Ether, QNT, GALA, SHIB, HOT, and MATIC, which are stored at an address starting with 0x181.Cold and hot wallets are typically used by centralized cryptocurrency exchanges to manage customer assets.
Offline storage options called cold wallets offer a higher level of security against cyberattacks. Faster deposits and withdrawals are possible with hot wallets connected to the internet, but they are also more susceptible to hacks.
The second significant exchange to be the subject of a recent cyberattack against centralized exchanges is Bitrue. In a related occurrence earlier this week, the South Korean-based exchange GDAC lost roughly $13 million in cryptocurrency assets.
These most recent exchange hacks serve as a reminder of the value of security precautions and the requirement to keep an eye on cryptocurrency exchanges.
While the decentralized nature of cryptocurrencies is one of their advantages, it also means that nobody is in command of the market, therefore users must exercise caution and due diligence when selecting a crypto exchange to make sure their assets are as secure as possible.
Following the incident, consumers of Bitrue may be concerned about the security of their assets, but worries should be allayed by the exchange’s prompt response and commitment to enhancing security.
The exchange is conducting a comprehensive security review and guarantees to keep its users informed when new developments occur.
