Cybercriminals Strike $27 Million at Crypto Exchange

An audacious cyber-attack struck the Seychelles-based crypto platform BigONE on July 16, leading to the loss of approximately $27 million. The intrusion targeted the company’s hot wallet and resulted in significant theft, including 120 bitcoins, 350 ether, 1,800 solana, and 8.54 million tether. BigONE responded swiftly, pledging to compensate users for the full extent of their losses.

How Did the Hack Unfold?

The theft was executed using an advanced supply chain attack, as revealed by blockchain security firm SlowMist. This technique involved hackers placing harmful code into the platform’s production network to facilitate automatic withdrawals. The method circumvented the need to access private keys directly, using intermediary updates to slip past existing security protocols.

Was Prompt Detection Enough?

Although BigONE’s surveillance systems quickly identified the irregularity, the breach still resulted in significant financial damage, extending across four different networks. The security compromise impacted numerous digital currencies, including lesser-known assets like Dogecoin, Shiba Inu, and Celer Network’s token.

In response to the breach, BigONE immediately isolated the infiltration route. Key measures included securing hot wallet credentials and deploying security reserves to safeguard its liquidity. A portion of the total may be offset by the company’s insurance fund, which has accumulated through prior profits.

With a high transactional throughput, BigONE aims to restore deposit and trading functionalities promptly. Ongoing blockchain monitoring continues to track the stolen assets. Blockchain data analyst ZachXBT commented, alleging the platform’s wallets have previously facilitated transactions linked to scams.

Key takeaways from the BigONE hack include:

• Hackers utilized a sophisticated supply chain attack.
• Approximately $27 million worth of multiple cryptocurrencies were stolen.
• BigONE committed to a full refund of user losses.
• The breach affected numerous crypto assets.

While BigONE addresses the aftermath of the breach, it emphasizes its determination to secure user assets and restore full trading functionality swiftly. The incident underscores the persistent vulnerabilities in cryptocurrency exchanges and the critical need for robust cybersecurity measures in the digital finance space.