Cryptocurrency exchange BtcTurk has suspended operations following a suspected multi-chain exploit, with losses potentially reaching $48 million.
Details of the Attack on BtcTurk
The exploit, detected by blockchain security platform Cyvers, targeted Ethereum, Avalanche, Arbitrum, Base, Optimism, Mantle, and Polygon networks. The majority of the losses were concentrated in two main addresses. One compromised wallet used MetaMask swaps to quickly convert stolen tokens into ETH, indicating an attempt to centralize funds.
Market Impact and Ongoing Investigation
Stolen assets include SOL, stablecoins, and liquid meme coins that can be exchanged on decentralized exchanges but can be traced on-chain. More than $34 million worth of ETH was distributed among two wallets, as well as L2 tokens of Optimism, Arbitrum, and Mantle. The recent incident has led to negative market reactions, with significant declines in BTC and ETH values.
Current Status of the Exchange and Next Steps
BtcTurk is collaborating with blockchain security companies to track the stolen funds and identify the hacker. There is currently no clarification on when deposit and withdrawal services will resume. The exchange has a daily trading volume of approximately $300 million, with 75% traded against the Turkish lira.
The incident involving BtcTurk highlights ongoing security challenges in the crypto industry. Ensuring secure practices in handling digital assets remains a critical task for all market participants.
