By
Chimamanda U. Martha
May 3rd, 2024
BitKeep has promised to reimburse all users affected by the attack entirely.
BitKeep wallet, a Web3 platform most popular in Asia, has reported a loss of about $1 million on the Binance BNB chain. The company announced through a series of tweets that it had managed to contain the emergency. However, BitKeep Swap services will remain suspended until further notice. Furthermore, it is a prudent measure to ensure no more bleeding amidst increased hacking.
BitKeep has informed its users that it is working with relevant security agencies to track down the hackers and recover the stolen funds. Meanwhile, BitKeep has promised to reimburse all users affected by the attack entirely.
3/4 3⃣Reimburse users who suffered losses (full amount; the specific plan will be announced later)
4⃣Encourage people who can assist in identifying the hackers and recovering the stolen assets to contact us. You will be highly rewarded. Thank you in advance.
— Bitget Wallet 🩵 (@BitgetWallet) October 17, 2022
The company has, however, promised to work closely with industry security experts to strengthen its asset swap systems.
BitKeep Hack in BNB Chain: The Latest Attack in ‘Hacktober’
Over $700 million has been reported stolen from DeFi platforms in October, the worst in years. While the cryptocurrency market is trapped in a bear market and a possible dip before recovering, attacks have increased fear in most investors. Flawed designs in the DeFi multi-chain capabilities have enabled attackers to siphon billions of dollars worth of crypto assets.
The rising cases of DeFi attacks have attracted global security agencies’ attention. The United States white house through the Biden administration issued a directive on cryptocurrency regulations. As a precautionary measure, the Biden administration issued a ban on Tornado Cash, a crypto mixer platform, for enabling money laundering.
Reportedly, North Korea-sponsored hackers, including the Lazurus group that was implicated in the Axi Infinity attack, used Tornado Cash to clean up their operations before liquidating over $400 million.
At the beginning of this month, Binance suspended operations in most of its chains after noticing a major anomaly. Reportedly, the Binance attacker stole over $500 million in crypto assets but only managed to liquidate $100 million.
The dent was, however, negligible to Binance, which is highly valued, and backed by major investors globally. Reportedly, the attacker created extra BNB, but the Binance validators quickly halted their operations.
The DeFi major growth explosion in the past few years has been its worst enemy in the past one year. Due to the decentralization aspect, anyone can access any DeFi source code via GitHub and closely examine it for security flaws. As such, major DeFi exploits have taken place via network bridges.
Takeaway Points
Web3 users are advised to take note while authorizing any contract and storing security information. Otherwise, it is prudent to use reputable platforms that are not only secured but also insured from hacks.
The cryptocurrency market has, however, recorded major potentials to disrupt traditional financial sectors. More, institutional investors are adding Bitcoin and other crypto assets to their balance sheet.
