The scenario of crypto exchange hacks is getting more frequent lately. A couple of months ago, Binance exchange was technically hacked and a sum of 7,000 BTC got stolen successfully. Also, Bitrue experienced the same, losing about $4.5 Million worth of assets in the process.
The latest target of hackers’ perpetration is Bitpoint, a cryptocurrency exchange based in Tokyo, Japan, where the sum of ¥3.5 billion ($32,389,000) in Ripple XRP and other cryptocurrencies were carted away.
As reported in a press release, about ¥2.5 billion ($23,135,000) of the funds stolen belonged to the customers of the exchange, while the remaining ¥1 billion belonged to Bitpoint exchange.
Remixpoint Inc, an Electric Services Company reportedly owned the exchange. The major attack adversely affected the shares of the company as customers started initiating continuous sell orders. Tokyo’s crypto exchanges have experienced several cyber attacks.
How the Funds Were Stolen
The funds were reportedly stolen from a hot wallet connected to the internet, containing Ripple’s XRP, Bitcoin, Bitcoin Cash, and two other digital currencies. No fund was said to be lost in cold wallets that are not connected to the internet.
Bitpoint is one of the cryptocurrency exchanges licensed by the Financial Services Agency after Coincheck was hacked about a year ago.
Past Hackers’ Activities on Crypto Exchanges
Hackers have caused lots of havocs on crypto exchanges in the past, and huge funds have so far been successfully carted away with little or no trace.
Some months ago, the security intelligence of Binance was beaten. The exchange lost about 7000 BTC in the process. Almost all measures were taken to recover the stolen funds, but seemed to prove futile.
Cryptopia was as well dealt a big blow by hackers in January 2019. The exchange failed to fully recover from the attack, which led to its liquidation sometimes in May.
Bitrue and Gatehub have also recorded hackers’ perpetration, where both lost a lot of funds, especially in Ripple XRP.