SHIB And Huobi Community To Help BitMart After The $200M Hack

The SHIB and Huobi community decided to help the BitMart exchange that got hacked out of $200 million in 20 different tokens as we can see more today in today’s Huobi news.

Following a near $200 million hack on the BitMart exchange, the SHIB and Huobi community decided to help the exchange in enhancing its security and to track inflows of stolen assets better. BitMart became a victim to a hot wallet compromise hosted over the ETH and Binance Smart Chain blockchain. The hackers were able to steal more than $196 million roughly over $100 million over the Ethernet network and around $96 million over the BSC blockchain.

1/3 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.

— Sheldon Xia (@sheldonbitmart) December 5, 2021

After bitMart CEO Sheldon Xia confirmed the hack, Huobi announced it will help the exchange to track the inflow of assets on the exchange and to report matches the stolen funds. Huobi’s director of global strategy Jeff Mei suggested that transparency and quick responses are of extreme importance while dealing with these attacks:

“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.”

Huobi will do our best to assist #BitMart in handling this issue. If there are any inflows of related assets, we will report and assist in a timely manner.

— Huobi (@HuobiGlobal) December 5, 2021

Mei stressed that the users should not pool their assets on a single platform or a single wallet and advised the users to research the safety measures of the platform before investing and notifying the person of relevant exchanges if they become aware of any potential security incidents. The Shiba Inu community confirmed it will help the exchange because of their existing efforts in reviewing potential security threats for ShibaSwap. Xia also noted that the exchange will compensate the affected investors with its own funds:

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

The hack forced the exchange to stop all withdrawals and deposits but Xia is confident that BitMart will resume all services by December 7. The cross-chain protocol Synapse Bridge averted a multi-million dollar exploit on the Avalanche Neutral Dollar Metapool so Synapse Bridge prevented the hacker from stealing $8 million worth of crypto:

“Over the past 16 hours, we encountered and discovered a contract bug in the way that the AMM Metapool contracts handle virtual price calculations against the base pool’s virtual price.”

Dear #ShibArmy,

Even though the core of our project is decentralization, we want to show our support and give some love to our friends at @BitMartExchange, who are already working hard to fix the security incident that happened yesterday. pic.twitter.com/CJZjQHaP59

— Shib (@Shibtoken) December 5, 2021

While the threat was averted, the protocol deployed a new nUSD pool as a means to further enhance its security against these similar attacks.