BtcTurk which is one of the largest crypto trading companies in Turkey has been attacked by the Internet resulting in unauthorized access to some of its hot wallets. The exchange has reported some level of asset losses, however, they are looking for sufficient financial stability to overcome this reversal.
$5.3 Million Earned By BtcTurk, But How Much To Lose?
In a recent situation update, BtcTurk shared that its team discovered a hack had taken place on its site on June 22 which is causing great concern in the crypto community.
Although the total amount lost was not disclosed, BtcTurk said that the incident only resulted in the damage of 10 cryptocurrencies hot wallets while all cold wallets, which the Turkish exchange claims hold most of its assets, remain safe.
Commenting on the incident, Richard Teng, CEO of Binance, announced a joint investigation effort between the two exchanges leading to the recovery of stolen assets worth $5.3 million.
Teng says:
Binance is assisting BtcTurk with investigations and has recovered over $5.3M in stolen funds so far.
Our investigative and security teams are working around the clock as part of our efforts to protect the ecosystem from bad actors. We will provide further relevant updates.
Meanwhile, popular on-chain investigator ZachXBT gave details about who the bad actors are behind this hack.
According to ZachXBT, the hackers may be connected to the address 0x327a81d0d128db8886d265be73c9fdda97194f30 which he recently saw transfer 1.96 million AVAX ($54.2 million) to Coinbase and THORChain for a 10% drop in AVA value. ZachXBT has based its introduction on BtcTurk with its AVAX market address on the Avalanche X-chain.
At the moment, the Turkish exchange has not confirmed or denied the idea but all withdrawals and deposits on the trading floor have been disabled. BtcTurk claims that the hack did not affect its strong financial position and assures all users of the safety of their assets.
2024 Sees Second Crypto Exchange Hack – Growing Cause for Concern?
The cyber attack on BtcTurk represents the second hack in crypto trading in 2024 after the Japanese platform DMM Bitcoin lost $305 million in BTC through a security breach in May.
Generally, hacks in crypto exchanges attract a lot of attention due to the secure nature of these platforms that allow them to own the private keys of their customers.
In addition, these platforms are known to hold larger funds than their DeFi counterparts. In context, Coingecko reports that Binance, the largest exchange in the world, records 13x the daily trading volume of the most prominent exchange, Uniswap.
Nevertheless, all kinds of hacks or attacks reinforce the need for continuous development and security cooperation in the crypto ecosystem.
Featured image from WIRED, chart from Tradingview
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