On June 2, BitoPro, a cryptocurrency exchange based in Taiwan, publicly acknowledged a $11.5 million crypto hack after community pressure, with detection credited to on-chain analyst ZachXBT.
The delayed response from BitoPro exposes vulnerabilities and raises community distrust, highlighting the ongoing challenges faced by crypto exchanges in ensuring transparency and security compliance.
ZachXBT Uncovers $11.5M BitoPro Cyberattack
BitoPro faced an $11.5 million cyber attack discovered by ZachXBT on May 8. Afterward, BitoPro CEO issued a formal acknowledgment due to community insistence. Initially, system issues were cited instead of the hack.
“The stolen funds were then deposited to Tornado or bridged to Bitcoin via Thorchain and deposited to Wasabi,” — ZachXBT, On-chain Analyst
The affected assets included major tokens like ETH and USDC, which were laundered through decentralized exchanges. BitoPro’s leadership, while delayed, emphasized their operational capacity due to adequate reserves during the incident.
User Confidence Dented After Hack
Despite BitoPro’s assurances, user confidence has diminished, impacting its reputation. The community criticized BitoPro’s initial lack of transparency. This could prompt stronger industry protocols for incident disclosures among centralized exchanges.
The $11.5 million loss highlights vulnerabilities in centralized platforms’ hot wallets. If transparency measures improve, similar cases might face greater scrutiny. BitoPro’s commitment to more open inspection could help mend user trust over time.
Cetus DEX $220M Hack Sets Precedent
BitoPro’s incident follows similar hacks, such as Cetus DEX’s $220 million attack. Hot wallet vulnerabilities and laundering via anonymity protocols are consistent threats in the sector, necessitating improved security strategies.
Experts suggest that reinforcing blockchain regulations and technological safeguards could mitigate such risks. Previous exploit recoveries, like Cetus regaining $162 million, demonstrate potential positive outcomes with robust responses.
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