Bitopro Replenishes Funds Post $11M Hack
- Hack exploited an old wallet during system maintenance.
- BitoPro replenished stolen assets by hiring security experts.
- User funds secured, market unaffected long-term.
BitoPro, a Taiwanese crypto exchange, reported an $11 million hack during a wallet upgrade, later replenishing lost funds successfully.
The hack impacts broader discussions on exchange security, with the potential to necessitate stricter controls on hot wallet management.
BitoPro, a prominent Taiwanese exchange under BitoGroup, experienced a cyber theft during a scheduled system upgrade. An old hot wallet was compromised leading to an $11 million loss. The exchange promptly replenished all affected funds.
The breach occurred during internal transfers, as detailed in a statement on BitoPro’s Telegram. Investigators, including on-chain sleuth ZachXBT, tracked stolen assets across major blockchains like Ethereum and Solana.
“An old hot wallet was compromised during a wallet system upgrade. While shifting funds internally, the attacker struck. The hack was quickly stopped. Assets were moved to a new wallet, and a third-party blockchain security firm was hired to trace the attacker.” — BitoPro Leadership Team, BitoPro/BitoGroup source
Impacts on markets, including a temporary suspension of trading on BitoPro, were observed but did not mirror broader crypto volatility. Dogecoin dipped 12%, though direct ties to the incident remain unproven.
Incident analysis revealed funds were laundered using protocols like Tornado Cash. BitoPro’s hiring of a blockchain cybersecurity firm aims at tracing and securing the network against future breaches.
Regulatory outcomes could include more rigorous safety protocols for crypto exchanges, highlighting vulnerabilities within hot wallets. Past incidents mirror the need for continued technological advancements in blockchain security frameworks.
