BigONE Crypto Exchange Hit by $27 Million Hack

Cryptocurrency exchange platform BigONE has suffered a devastating security breach, resulting in the loss of $27 million worth of Bitcoin, Ethereum, and other digital assets.

The company revealed that the attack occurred when its hot wallet was targeted, but fortunately, the private keys remained secure. The attackers exploited a supply chain attack on the production network, allowing them to modify the operating logic of account and risk control related servers, thereby enabling them to withdraw the stolen funds.

BigONE has assured users that it will fully cover all losses and absorb the impact of the breach without affecting its users. To mitigate this, the company is suspending deposit and trading functions while recovering its systems and will resume withdrawals once its systems stabilize. Margin users are also advised to adjust their balances promptly to minimize market risks.

Despite the significant loss, BigONE remains committed to transparency and has partnered with blockchain security firm SlowMist to trace the hack, monitor fund movements, and hopefully recover the stolen funds. The exchange is working closely with external sources to replenish its liquidity once it resumes normal operations.

This incident highlights the ongoing vulnerability of cryptocurrency exchanges to cyber attacks. This year alone has seen several high-profile hacks, including ByBit losing $1.5 billion to alleged North Korean hackers and Coinbase falling victim to an inside job costing it $400 million.

However, BigONE's response to the breach demonstrates its commitment to user security and transparency. The company is using its internal security reserves to replenish the BTC, ETH, USDT, SOL, and XIN holdings of its users and borrowing other affected tokens from external sources to ensure liquidity once normal operations resume.

Tracing cryptocurrency is a complex process, particularly given the public nature of its ledgers. However, recovering stolen funds requires cooperation with authorities, which can be challenging in some cases. Fortunately, firms like Chainalysis, TRM Labs, and CryoGuards specialize in recovering crypto, allowing victims to recoup their lost assets for a fee.

BigONE holds more than $91 million in crypto assets, making the $27 million heist a significant concern for the company. However, its assurance that none of its users will be affected and its commitment to transparency and regular updates provide some comfort to users.