BitMart CEO Says Stolen Private Key Behind $196M Hack
The crypto exchange’s CEO said the company will compensate affected users out of its own funds.
Hackers were able to drain $196 million of crypto from crypto exchange BitMart by stealing a private key that opened two hot wallets, BitMart CEO Sheldon Xia tweeted on Monday.
- Hackers stole $100 million worth of various cryptocurrencies on the Ethereum blockchain and $96 million on Binance Smart Chain, crypto security firm PeckShield revealed on Dec. 5.
- BitMart has completed an initial security check and identified affected assets, and it plans to compensate users out of its own pocket, Xia said.
- The exchange will announce a timetable to gradually continue deposits and withdrawals, he said, adding that he is “confident” they will resume on Dec. 7.
- The hackers used decentralized exchange aggregator 1inch to swap stolen tokens for ether, and deposited ether funds to privacy mixer Tornado Cash to hide their identities, PeckShield said.
- A $139 million hack of BXH Exchange in October was also the result of leaked administrator’s keys.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.