Theft of $ 196 million cryptocurrencies … and a popular exchange blocks withdrawals

A security firm revealed that $ 196 million was stolen by the cryptocurrency exchange Bitmart.

Bitmart confirmed the hack in an official statement, which he described as a “large-scale security breach” and wrote that hackers withdrew estimated assets in $ 150 million. However, data analytics and security firm Peckshield estimates the loss to be close to $ 200 million.

Bitmart added that all withdrawals have been temporarily suspended until further notice, as it is in a full safety review was underway, according to CNBC, which was seen by Al

The data security company noted that a Bitmart account showed a steady stream of tens of millions of dollars in an account called Bitmart Hacker.

Beckshield estimated the amount of coins stolen at around $ 100 million via the Ethereum blockchain and another $ 96 million in cryptocurrencies on the Binance network.

Bitmart said the Ethereum and Binance blockchain “hot wallets” only hold a “small percentage” of the cryptocurrency exchange’s assets.

People who choose to hold their cryptocurrency can keep it “hot”, “cold” or a combination of the two. Hot wallets are connected to the internet and allow owners to access their coins relatively easily.

Bitmart said it was still unclear what potential methods the hackers used, but what happened after the hack was very clear, according to Beckshield. As the data security company revealed, it was a classic case of “swap, barter and wash”.

After transferring funds from Bitmart, the hackers apparently used the decentralized exchange aggregator known as “One Inch” to trade the token stolen with ether. From there, the Ethereum coins were deposited in a privacy mixer known as Tornado Cash, which makes it even more difficult to track funds.

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