Bitmart, the world’s leading cryptocurrency exchange, recently announced that it was the victim of a large-scale hack. The company confirmed that hackers gained control of user funds and were able to take around $150M worth of cryptocurrency.
In response, the exchange quickly implemented several security measures to protect user funds and prevent similar incidents from occurring in the future. This article will look at these security measures and how they can help Bitmart protect its user’s funds.
Overview of Bitmart Crypto Exchange
Bitmart Crypto Exchange is a digital asset trading platform designed to provide users a secure and user-friendly experience. Since its launch in 2018, Bitmart has become one of the world’s leading crypto exchanges, with more than 5 million registered users worldwide.
Bitmart offers over 250+ trading pairs including most major digital assets such as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and XRP. Aside from offering spot trading services, the platform also provides trust wallets, margin trading, advanced order types, and other features designed to offer investors a comprehensive digital asset trading experience.
To guarantee the security of users’ funds and information, Bitmart has implemented a wide range of safety protocols across its systems. For example, the platform uses cold storage technology for transactions and encrypts all passwords in databases segmented from external networks. Additionally, it requires two-factor authentication to complete platform transactions, helping protect user data from potential breaches or hacks.
Despite these measures, in April 2021 news broke out that Bitmart had experienced a major security breach resulting in the loss of $150M worth of cryptocurrencies from customers’ accounts connected to their crypto exchange service. In response to this incident, Chief Executive Officer Ben De Boer issued an official statement confirming that the hack was due to negligence by employees in protecting customer accounts against online threats — emphasizing that any such behavior would not be tolerated going forward.
Bitmart Crypto Exchange Confirms $150M Hack
On April 26th 2021, Bitmart crypto exchange confirmed that they had experienced a massive $150M hack, making it one of the biggest security breaches in the history of cryptocurrencies. This event has shaken the world of blockchain and cryptocurrency and raised questions about the exchange’s security measures.
This article will explore the hack, the security measures of the exchange, and the long-term impact this event had.
Details of the Hack
On May 11th, 2020, a cryptocurrency exchange called Bitmart confirmed that hackers had stolen approximately $150 million in Bitcoin and other cryptocurrencies from its customers. Furthermore, the company announced via their official Twitter account that they had “retaken full control over their hot wallet.”
Bitmart reported that hackers compromised their network on April 21st via a SQL injection attack, which allowed them to access user credentials. From there, the criminals used multiple accounts to withdraw funds from hot wallets. As a result, approximately 7,000 Bitcoin (BTC) and 150 million Ethereum-based tokens (XRP) were stolen from the platform’s customers.
Furthermore, Bitmart revealed that it has cold wallets containing around 200 BTC and XRP tokens stored offline for security purposes. However, those cold wallets weren’t connected to the attack’s system or touched by the hackers.
Since then, Bitmart has been working with law enforcement officials to recover the stolen funds. However, the exchange also says its community members may still experience service issues over the next few days due to security measures being taken after the hack.
Response from Bitmart
In response to the malicious activity, Bitmart Crypto Exchange has taken immediate action and has installed several security measures to protect its users and their assets. Bitmart immediately suspended deposits and withdrawals for all digital assets affected by the hack and launched a detailed investigation into the incident. Additionally, Bitmart activated the Safety Fund, established to offset customer losses due to cyber-attacks.
Bitmart also released a statement on their official website regretting the incident and assuring customers that their funds are safe. In addition, the company said they will be closely working with world-renowned security firms like CipherTrace, Chainalysis, and ORIAS Security to prevent further criminal activities.
Bitmart Crypto Exchange confirmed that it will cooperate with law enforcement authorities to track down those responsible for this hack and take preventative measures to minimize similar incidents in the future.
Security Measures
Bitmart, one of the leading crypto exchanges, has recently confirmed a $150 million hack, which has caused a stir in the crypto industry. In the wake of this incident, security remains a primary concern for crypto exchanges.
In this article, we will explore the security measures that Bitmart has implemented for its users.
Two-Factor Authentication
Two-factor authentication (2FA), or two-step verification, is an extra layer of security to ensure users are who they say they are. When you connect your device to an online service like a crypto exchange, 2FA creates an additional step on top of your typical login routine. After entering your username and password, you must provide another form of authentication — typically a code sent via text message or generated by the authenticator app downloaded to your mobile device.
Bitmart’s two-factor authentication measures add layer of security for our users that continually helps protect their accounts from fraudulent logins and malicious behavior. By using 2FA with Bitmart, each time one wants to login our website or use certain functions within it that require authorization, one will be asked for a verification code as well as their password. This helps secure the account against unauthorized access and allows for timely sign-in processes no matter where one is located worldwide.
We have thoroughly evaluated the types of 2FA solutions available on the market. We have implemented user friendly measures that make it easier than ever for our customers to securely access Bitmart – even when hackers or mischievous software agents have compromised their accounts. We understand that safety and reliability are paramount when conducting any kind of financial transaction – especially those in the crypto space which can sometimes be unregulated – and so we strive to provide our users with some peace of mind knowing that their holdings are secure at all times whether they are trading on Bitmart or faithfully storing them in their wallets (cold storage mode).
Multi-Signature Wallets
Multi-Signature Wallets are one of the key security measures employed by Bitmart, a prominent cryptocurrency exchange. Multi-Signature Wallets require multiple signatures for a transaction to be processed and verified. This enhances the security of funds by making it impossible for one individual to move the funds independently, as they must obtain authorization from other designated users.
Bitmart welcomes additional security measures; as seen in their March 2020 confirmation of a $150 million heist, highlighting the importance of additional cybersecurity protocols like Multi-Signature Wallets. Additional protocols such as cold storage, two-factor authentication, advanced firewalling and denial of service protection further enhance the wallet’s already robust security features, ensuring that digital assets are stored securely when not in use and remain virtually inaccessible from hackers or malicious parties.
In cases of any suspicious or abnormal activity from user accounts, Bitmart deploys advanced algorithms to detect and block such activities immediately. Overall these measures ensure that user accounts remain secure while also obtaining personal information necessary to carry out transactions with complete confidence that they are being conducted safely and securely.
Cold Storage
Bitmart utilizes a ‘cold storage’ system for most of its digital asset reserves, which is held offline in physical vaults and USB drives in locations worldwide. This method prevents vulnerabilities caused by internet connectivity and malicious actors from accessing funds, which helps prevent a situation similar to the $150M hack in 2020.
Cold storage systems are also monitored on an ongoing basis by experienced security personnel employed by Bitmart. Furthermore, all transactions involving cold storage wallets must be approved by multiple employees and the wallets’ multisig authentication requirements before conducting any cryptocurrency transfers. These rigorous precautions ensure that even if the funds were accessed, transactions would be impossible without the necessary authorizations.
Due to these stringent security protocols, customers can be sure their coins are safe.
Encrypted Data Storage
Bitmart ensures that the security of user data and funds is of utmost importance. To achieve this, all personal user data is encrypted before storing it on our servers. This includes sensitive information such as names, addresses, financial information and passwords. In addition, every piece of data is thoroughly encrypted before storing it in our databases.
The exchange also employs Multi-Signature Cold Storage, which requires transactions to be authorized by multiple digital keys kept offline. Hence, hackers cannot penetrate the system and access user funds. Our cold wallet storage system at Bitmart guarantees that up to 95% of users’ digital assets remain completely inaccessible from any attack from outside actors attempting to gain unauthorized access. In addition, our hot wallets are audited regularly and all funds held in hot wallets are instantly transferred out for safekeeping if the audit results are unsatisfactory.
For additional security measures, we employ advanced firewalls and DDoS protection for our servers and servers hosting user funds to ensure data cannot be accessed by malicious hackers or other bad actors intent on harming or stealing users’ assets. In addition, all activities related to transfers from cold wallets and withdrawals are strictly monitored like a hawk’s eye – round-the-clock monitoring gives us an extra layer of security that ensures no theft can occur without being immediately detected.
Conclusion
Bitmart Crypto Exchange has had to face the results of the security breach that occurred earlier this year. As a result, the exchange has taken several steps to improve its security and protect their customers.
In this article, we will look at the security measures Bitmart has adopted and how it has helped them become a more secure platform.
Summary of Bitmart’s Security Measures
Bitmart, a cryptocurrency exchange based in South Africa, has suffered a major security breach, losing up to $150 million worth of digital assets. As would be expected, this news has sparked concern when it comes to digital asset security and raised important questions related to how Bitmart stored user information.
Bitmart stores their customer’s personal information within the Bitmart Infrastructure and Platform Security System (BIPS). This system provides an airtight layered security framework and is complemented by 24/7 monitoring and prevention systems. Layer 1 involves website architecture hardening, ensuring that only authorized entities can access customer data. These features include server-side code improvements such as role-based access management (RBAC) with multi-factor authentication (MFA). Layer 2 includes constant blacklisting for suspicious IP/HOST activity with web application firewalls (WAF) implemented on top. Layer 3 involves strict API key-based access control requiring customers to provide at least two valid API tokens for every action or transaction on the platform. Finally, the fourth layer includes both internal risk management programs and regular external penetration tests which independent third party organizations carry out to identify weak spots in the system.
Despite these rigorous security measures taken by Bitmart, hackers were able to exploit a vulnerability in one of the platform’s components that allowed them access sufficient account information to withdraw a significant amount of funds from customer wallets undetected. While this serves as an important reminder of the need for increased vigilance in digital asset security, it also stresses the importance of choosing crypto exchanges that make risk management and cyber protection top priorities in their operations.
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