BitoPro, a Taiwan-based cryptocurrency exchange, acknowledged a loss of $11.5 million due to a cyberattack on June 2, following community pressure. This event revealed vulnerabilities in the platform and raised doubts about its reliability.
Discovery of Cyberattack
The cyberattack on BitoPro, amounting to $11.5 million, was discovered on May 8 by on-chain analyst ZachXBT. Following community pressure, BitoPro's CEO confirmed the hack, although initially there were claims of system issues.
> "The stolen funds were then deposited to Tornado or bridged to Bitcoin via Thorchain and deposited to Wasabi," said ZachXBT.
User Trust Issues
Despite BitoPro's assurances of operational capacity, user confidence has significantly diminished, negatively affecting the exchange's reputation. The community criticized BitoPro's lack of transparency, which may lead to increased caution among users and calls for stricter incident disclosure measures among centralized exchanges.
Precedents in the Crypto Industry
The incident with BitoPro comes in the wake of similar hacks, such as the $220 million attack on Cetus DEX. Vulnerabilities in hot wallets and laundering through anonymity protocols remain a constant threat in the cryptocurrency sector. Experts recommend strengthening blockchain regulations and enhancing technological safeguards to mitigate such risks.
Events surrounding hacking incidents at BitoPro and other cryptocurrency exchanges raise important questions about security and transparency in the industry. Addressing vulnerabilities and improving incident disclosure measures can help restore user trust.
