Cryptocurrency trading platform BitMart disclosed about a large-scale security breach which resulted in the theft of around $200 million in various cryptocurrencies.
The breach has affected two of its hot wallets on the Ethereum (ETH) blockchain and the Binance smart chain (BSC). The company stated that the wallets contained only a “small percentage” of the assets.”
Hot wallets are connected to the internet and allow cryptocurrency owners to receive and send tokens.
According to PeckShield, blockchain security and data analytics company, the total loss is estimated to be around $200 million, and calls the whole chain of events as “Pretty straightforward: transfer-out, swap, and wash.”
BitMart’s chief executive Sheldon Xia said that this security breach was mainly caused by a stolen private key that had two of their hot wallets compromised.
BitMart is temporarily suspending withdrawals until further notice and a thorough security review is underway, with plans to resume the operations on December 7.
The development is the latest in a wave of hacks that have targeted cryptocurrency platforms such as PolyNetwork, Cream Finance, Liquid, and bZx, among others.
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