Bitmart CEO updates on the $196M hack, stolen keys was the cause

Bitmart CEO Sheldon Xia took recent $195 million hack to Twitter today to update about the checks and investigations.
Bitmart CEO Sheldon Xia took recent $195 million hack to Twitter today to update about the checks and investigations.

Crypto exchange platform Bitmart had been recently hacked and lost $196 million of crypto tokens. Sheldon Xia, the CEO of the company, took it to Twitter today to update about the checks and investigations.

After three tweets confirming the attack, the CEO, in his recent tweets, said that the team has completed a security check and identified the affected acids. He further revealed the hack happened because of stolen keys that opened two hot wallets. 

Bitmart has also planned to compensate the users out of its own pocket.

As per the data by crypto security company Peckshield, the attackers stole around $100 billion worth of different crypto tokens on the Ethereum blockchain and around $96 million on Binance Smart Chain (BSC).

Bitmart talks with several project teams

As TheCoinRise reported, the CEO previously said that the team was conducting security reviews and has seized all the withdrawals.

Xia said in the latest Tweet that Bitmart would announce a schedule to slowly start deposits and withdrawals with a goal of resuming by December 7. He stated:

“We are confident that deposit and withdrawal functions will gradually begin on December 7, 2021.”

The CEO further disclosed that the company is also meeting with multiple project teams to confirm the most reasonable solutions like token swaps. 

Peckshield explains that the attacker, in order to be extra careful, used the decentralized exchange aggregator 1inch to convert the stolen coins for Ethereum (ETH) and deposited the fund to privacy mixer Tornado Cash to conceal their identities.

The Bitmart attack is considered one of the largest crypto exchange breaches in history, even larger than the top 5 crypto exchange hacks in 2019.

The crypto exchange Upbit also witnessed a hack with attacker stealing Ethereum worth millions in 2019. Recently, the BXH exchange also drained $139 million in a hack, which was also the result of leaked keys.