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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.
Yazan Eliza Gkritsi
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.
Read more: Crypto Exchange Bitmart Hacked With Losses Estimated at $196M
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