BitMart, a cryptocurrency exchange platform, was hacked and suffered a nearly $200 million loss due to a hot wallet compromise on the Binance Smart Chain (BSC) AND Ethereum (ETH) blockchains.
PeckShield, a pioneer in blockchain security and data analytics, broke the news first via a tweet. Additionally, they stated that approximately $100 million in transfers occurred on the Ethereum chain, while $96 million occurred on the Binance Smart Chain.
At approximately 7:30 PM UTC, PeckShield observed an unusually high volume of outbound transfers. They discovered that numerous coins had been transferred from BitMart’s hot wallet. The hackers combined over 20 tokens, including BSC-USD, BNB, BPay, and Safemoon. Memecoins such as Floki, BabyDoge, and Moonshot were also hacked. Meanwhile, the funds transferred to ETH mixing service Tornado Cash will make it more difficult to track.
— PeckShield Inc. (@peckshield) December 5, 2021
BitMart representatives initially claimed that the outflow transfers were routine withdrawals. As a result, they declared the hack reports to be ‘fake news.’ Sheldon Xia, the CEO of BitMart, confirmed the security breach a few hours later.
We have identified a large-scale security breach related to one of our ETH hot wallets and one of our BSC hot wallets. At this moment we are still concluding the possible methods used. The hackers were able to withdraw assets of the value of approximately USD 150 millions.
Additionally, Sheldon announced that BitMart is suspending withdrawals until further notice and asks for everyone’s patience during this time.