Stolen Private Key: Reason behind $196M BitMart hack

$196 Million worth of crypto was drained by Hackers, as per the information provided by the CEO of BitMart, Sheldon Xia. Hackers were able to gain access to a private key, which provided them access to two hot wallets.

According to crypto security firm Peckshield, Hackers were able to steal $96 million worth on Binance Smart Chain and $100 million worth of cryptocurrencies on blockchain.

An initial security check was performed by BitMart and the affected accounts were identified. The CEO of BitMart has also informed its users that all the affected users will be compensated by the exchange.

A timetable will be announced by the exchange to continue deposits and withdrawals, and the CEO was confident to resume operations on 7th Dec.

Peckshield informed that, a decentralized exchange aggregator 1inch was used by hackers to swap stolen tokens for ether; the hackers then, in order to hide their identity deposited their funds to privacy mixer Tornado Cash.

A previous hack of $139 at BXH exchange in October was also the result of leaked administrator keys.

Disclaimer: The article is just to provide information and shouldn’t be considered as any financial advice. It is advisable to conduct thorough research before investing in any cryptocurrency.

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