Cyber Attack on Turkish Crypto Exchange BtcTurk!
One of the largest cryptocurrency exchanges in Turkey, BtcTurk, has had a tough time recently. Hackers attacked its servers on 22 June 2024 and caused a security breach.
Luckily, not all hot wallets have been accessed, but some have, and crypto assets have been stolen. The company is investigating this incident and is doing everything possible to protect its users.
Crypto Accountants explains everything regarding the attack, its outcomes, and responses from BtcTurk.
Details of the Attack
BtcTurk still needs to share the details of how exactly the cyber attack went through. However, it confirmed that the attackers did gain access to a specific set of hot wallets.
Hot Wallets vs Cold Wallets: A hot wallet is always connected to the internet to facilitate transactions. Thus, they are easier to hack. On the other hand, cold wallets are always offline and, therefore, much more secure.
Limited Impact: BtcTurk said only a few types of cryptocurrency were compromised in the hot wallets. They emphasized that none of their assets were kept in hot wallets. Mainly, they were stored in cold wallets, and none of these were affected.
However, the exact amount of cryptocurrency stolen has not been confirmed. Some estimates from sources have losses as high as 51 million euros, while others put them much lower. BtcTurk itself has yet to provide an exact amount.
BtcTurk’s Response
After the incident, BtcTurk immediately took matters into its own hands:
Cessation of Withdrawals: All action to do with the withdrawals was ceased immediately to halt further unauthorized access.
Enhancing user security: BtcTurk introduced more security steps to ensure user asset safety.
Investigation of the Attack: The exchange conducted thorough research to identify the attackers and how they performed the attack.
User Reassurance
BtcTurk pointed to the fact that their financial power was good enough. They can compensate for the loss caused by this attack. They further reassured the users that funds would not be affected at their end. On its part, BtcTurk reported this incident to related security authorities.
In a related development, Binance, one of the largest cryptocurrency exchanges in the world, froze $5.3 million of the allegedly stolen funds. This cooperation of exchanges proves the efforts within the crypto industry to fight cybercrime.
Further Impact and Lessons Learned
The compromise on BtcTurk, where its users' accounts leaked, further emphasized that this problem with cryptocurrency exchanges continues. No matter the extent of security, cybercriminals continue to look for loopholes in their system.
That indicates that crypto users must be extra careful when using their digital assets. Here are some best practices:
Use secure exchanges: Choose those with a good past and those who protect their users.
Enable two-factor authentication, which is an extra security layer for your accounts.
Use Cold Wallets: Keep your cryptocurrency in cold wallets for high security.
A Last Word from Crypto Accountants!
The actual extent of the attack on BtcTurk remains unknown, with many questions unanswered. Among them are the attackers' identification and what all this will mean for the exchange in the long term.
This incident could serve as a wake-up call for the Turkish cryptocurrency industry and others worldwide. It may lead to meaningful discussions and reviews of security measures and user practices.