• In July 2022, the Singapore-based crypto platform announced a collaboration with Cardano to help decentralize $ADA.
• The organization tallied a loss of $23 million in the following digital currencies; ETH, QNT, GALA, SHIB, HOT and MATIC.
• On June 27, 2019,  a hacker exploited a vulnerability within their blockchain security.

With Web3 technology still reasonably new many systems operating any blockchain application are prone to several vulnerabilities. Unfortunately, due to this factor, several actors try to bypass blockchain security to gain access to digital currency illegally. In 2022, several crypto hacks led to the crippling effects the ecosystem suffered during the end of the year. Unfortunately, a similar scenario occurred as Bitrue exchange, a Singapore-based crypto platform, suffered a hot wallet exploit, draining $23 million of digital currency.

This confirms yet another vulnerability that web3 faces, leading to several users questioning the secure nature of various blockchain applications.

Who are the Biture exchange

Bitrue Exchange is a Singapore-based crypto trade platform with a range of financial products for crypto traders. In 2018, blockchain enthusiasts established the organization to provide complete financial services for digital currencies. Curis wang founded the Singapore-based crypto platform mainly because of his passion, and he believed that digital assets were the future of the financial system.

Throughout its years of operation, Bitrue has upgraded its features almost yearly and is proud of its current sophisticated blockchain system and security control measures. It has worked with various vital figureheads within the crypto industry. 2022 was one of its highest points as an organization as it partnered with several key figureheads within the industry.

Also, Read Blockchain Security: Lessons Learnt in 2022, expectations for 2023.

In July 2022, the Singapore-based crypto platform announced a collaboration with Cardano to help decentralize $ADA. According to its reports, they said they would aid by staking with community stake pools.

For those unaware, a stake pool is a reliable server node focusing on ledger maintenance and holding various stakeholders’ combined resources( the stakes) in a single entity. For some time now, Bitrue has had a close relationship with Caano and has supported some of its ventures.

A Bitrue account allows a user to access 200 cryptocurrencies at market price. In addition, the organization also offers reasonable exchange fees making it a popular franchise in its select countries. Bitrue Exchange offers no transfer fees for moving funds via ACH and a low 0.08% starting trade fee for direct purchases from a bank account. The organization also boasts of its highly sophisticated blockchain security despite being hacked.

Bitrue crypto exchange hacked

Unfortunately, its bragging rights have gone down the drain as a hacker took advantage of a hot wallet exploit and drained the Singapore-based crypto platform. According to the investigations, the crypto hack occurred on April 14 2023. Unfortunately, the organization has yet to identify the source.

Bitrue spokesperson stated that they had identified a hot wallet exploit and were able to mitigate the vulnerability preventing any further losses quickly. The organization tallied a loss of $23 million in the following digital currencies; ETH, QNT, GALA, SHIB, HOT and MATIC.

Also, read Wintermute’s DeFi operations compromised after a US$160 million crypto hack.

Bitrue Exchange has stated that the hot wallet exploit has searched less than 5% of its initial reserves. Despite this bold announcement, the Singapore-based crypto platform has shut down all withdrawals. They have reassured customers that they will compensate those affected, and operation should resume by April 18. 

It is crucial to note that the exchange experienced a previous crypto hack in 2019. According to investigative reports, the incident occurred on June 27 when the hacker exploited a vulnerability within their blockchain security. At the time, the hacker stole 9.3 million XRP and $2.5 million ADA coins and moved them to another exchange.

The attack strategically timed the strong bull run for Bitcoin and other altcoins. At the time, the entire crypto industry was valued at $345 billion, according to CoinMarketCap. With the second hack in less than five years, many have questioned the blockchain security measures implemented in Bitru Exchange. Fortunately, one of its redeeming features is its ability to compensate its users. Doing this has averted the indirect effects of the crypto hack and built steady trust between the Singapore-based crypto exchange and its users.

Conclusion

Crypto hacks are common; thus, most veteran crypto traders warn newbies to be selective of where they store their digital currencies. A hot wallet exploit stems from a vulnerability within a blockchain security system. Unfortunately, as blockchain developers further learn, the limitations of the technology are still roughly a new concept. Most web3 applications are prone to zero-day attacks, and unless throughout testing is done, the vulnerability could lead o further losses.

Also, Read SmartAfri Launch: Incorporating African Culture into the Blockchain.

Despite this, progress continues with the Sinagbore-based crypto platform as it seeks to improve its blockchain security and regain its bragging rights.