BigONE exchange reported a cyberattack resulting in approximately $27 million in losses. The incident is connected to breaches of its hot wallet.
Detection of the Incident
On July 16, BigONE announced that it detected unusual activity in asset movements which triggered alerts in its monitoring system. "Upon investigation, it was confirmed to be the result of a third-party attack targeting our hot wallet," the exchange stated.
Compensation for Users' Losses
BigONE pledged to cover all losses resulting from the breach to keep users' assets secure. The company activated its internal security reserves, including BTC, ETH, USDt, and others, to restore affected user funds.
Analysis of Vulnerabilities and Consequences
According to blockchain security firm Cyvers, the attack was executed through compromised infrastructure, leading to a withdrawal of 350 ETH. Additionally, various vulnerabilities were identified, such as inadequate network segmentation between management servers and wallets.
The BigONE incident has raised awareness about growing security vulnerabilities in cryptocurrency platforms and sparked discussions on the need for enhanced protective measures.
