In one of the most large-scale crypto hacks in 2021, a hacker allegedly stole $196 million worth of cryptocurrencies from crypto exchange Bitmart. In the early hours of December 5th, the hacker reportedly stole several altcoins, such as BNB, Shiba Inu, USDC, and more.
Now, Bitmart CEO Sheldon Xia has revealed the cause behind the hack. Xia tweeted that the hacker was able to steal the private keys of two hot wallets to access and drain the funds from Ethereum blockchain and Binance Smart Chain.
Security analysis firm Peckshield was the first to report the hack. The firm maintained that the hacker has drained $100 million from the Ethereum blockchain, and $96 million from Binance Smart Chain.
CEO Xia said that the company will use its funding to compensate the affected users. “We are also talking to multiple project teams to confirm the most reasonable solutions such as token swaps. No user assets will be harmed,” he added.
“We are now doing our best to retrieve security set-ups and our operation. We need time to make proper arrangements and your kind understanding during this period will be highly appreciated.”
4/4 In terms of asset deposit and withdrawals, we are confident that deposit and withdrawal functions will gradually begin in December 7, 2021. The detailed timelines will be announced very soon. Thank you.
— Sheldon Xia (@sheldonbitmart) December 6, 2021