BitMart To Reimburse Hack Victims After Support From Crypto Community

BitMart to reimburse hack victims after strong support from the crypto community that was a part of the $200 million loss in crypto as reported previously in our crypto news.

Bitmart was hacked out of $200 million in a hot wallet compromise on Ethereum and Binance Smart Chain blockchains. The breach was exposed by Peckshield cybersecurity company whose team revealed that third parties were able to transfer millions using the BSC reserves of the exchange. The hackers were able to accrue over 20 tokens including altcoins like Binance Coin, BSC USD, and Safemoon. They were also able to steal huge quantities of meme tokens including Floki Inu, Baby DOGE, Moonshot, and more. The entire scheme can be attributed to a simple transfer-swap and wash maneuver and now Bitmart to reimburse hack victims, it will collaborate with the Huobi and SHIB communities.

To gain a better understanding of how the entire incident came to be, a spokesperson pointed out that a breach was discovered and then the firm took action by shutting down the systems to limit the immediate harm as the actions included halting token withdrawals as well as stopping users from trading certain Pairs:

“We plan to continue to gradually restore services but only following our security team’s thorough testing process. Security remains our No. 1 priority. In fact, as of Tuesday, Dec. 7, 2021, EST we have resumed ETH and ERC20 token deposits and withdrawals.”

The written response from the exchange outlined that in order to bolster the security, Bitmart replaced the token deposit addresses in relation to currencies such as Ether, BTC, and Solana as well as other tokens that were involved in the incident:

“We have also notified our users of the pertinent changes.”

The founder and CEO of Bitmart Sheldon Xia announced that the exchange was going to be using its own funding to compensate the losses:

“We are also talking to multiple project teams to confirm the most reasonable solutions such as token swaps. No user assets will be harmed.”

After the 200 million hacks, the members of the Shiba Inu community and Huobi Global offered to help Bitmart in order to enhance the security but also to keep an accurate tab on the inflows of the assets. Huobi’s director of global strategy Jeff Mei noted that in cases such as the one seen with Bitmart, it is a must that transparency and immediate action is given priority:

“Exchanges should alert their users, other exchanges and law enforcement authorities as soon as possible and be transparent about what they are doing to handle the hack and the loss of user funds.”