Crypto exchange Bitrue announced that it suffered a hot wallet exploit that enabled hackers to withdraw multiple cryptocurrencies worth nearly $23 million.
The news was announced on April 14, with Bitrue temporarily suspending all withdrawals due to a “brief exploit” of its hot wallet. The firm expects to reopen withdrawals on April 18, 2023, after conducting additional security checks.
Bitrue promises full compensation for affected users
Bitrue stated that it was able to address the issue quickly, preventing the further drain of funds. The exchange’s affected hot wallet accounted for less than 5% of its overall funds.
Executives at the exchange promised to fully compensate all identified users affected by the incident.
Typically, centralized cryptocurrency exchanges utilize both cold and hot wallets to manage user funds.
Cold wallets, which are offline storage solutions, provide a higher level of protection against cyberattacks. Hot wallets that are linked to the internet allow for faster deposits and withdrawals, but they are more vulnerable to hacks.
Bitrue is the second major exchange to experience a cyberattack targeting centralized exchanges in recent days. South Korea-based exchange GDAC lost almost $13 million in crypto assets in a similar incident earlier this week.
These recent exploits on exchanges underscore the importance of security measures and the need to monitor crypto exchanges.
While cryptocurrency’s lack of a central authority is one of its strengths, it also means that no one is in charge of the industry, making it necessary for users to be cautious and research before choosing a crypto exchange to ensure their assets are as secure as possible.
Bitrue’s customers have reasons to worry about the safety of their funds following the hack, but the exchange’s swift response and dedication to improving security should ease concerns. The exchange is conducting a thorough security review and promises to update its users as further progress is made.