BigONE Exchange Compensates Users After $27 Million Hot Wallet Breach

PANews reported on July 16 that BigONE faced a $27 million security breach early in the morning due to a third-party attack on its hot wallet. The platform has since contained the attack and is working on system recovery.

BigONE’s breach highlights the ongoing threat to centralized exchanges and the need for robust security. The incident has prompted BigONE to enhance security protocols and reassure its users of compensation and transparency.

BigONE’s $27 Million Security Breach: Impact and Recovery

BigONE confirmed that the third-party attack involved a hot wallet breach, leading to abnormal transfers of assets. They estimate the loss at around $27 million, affecting cryptocurrencies like BTC, ETH, and USDT.

To address the breach, BigONE promises to compensate users fully using its security reserves. Recharge and trading services are gradually restarting, with plans to reinstate the withdrawal functions soon.

Community reactions have been mixed, with minimal direct commentary from major crypto influencers or authorities. Security firm SlowMist emphasized that no private key leaks occurred, highlighting some relief in potential long-term effects.

SlowMist, Blockchain Security Firm: “The production network was hacked, and the operating logic of the account and risk control-related servers was tampered with, allowing the attacker to withdraw funds, but fortunately the private key was not leaked.”

Historical Breaches and Regulatory Scrutiny in Focus

Did you know? Similar security breaches have historically involved hot wallet compromises, affecting prominent exchanges like KuCoin and BitMart, underscoring the persistent vulnerabilities in centralized platforms.

Bitcoin (BTC) is currently priced at $117,855.93, with a market cap of around $2.34 trillion, maintaining 62.94% market dominance. Trading volume over the past 24 hours decreased by 42.70% to $85.01 billion. BTC has seen a 39.56% price increase over 90 days, as reported by CoinMarketCap.

Coincu research suggests that the incident may catalyze further regulatory scrutiny and push exchanges toward more secure mechanisms. As recovery efforts continue, ensuring user trust becomes pivotal, potentially driving more advanced security measures within the industry.