Cryptocurrency exchange Hotbit shut down all of its services after an attempted cyber attack on Thursday.
The website of the platform said in an announcement: “Hotbit has just been subjected to a major cyber attack that began around 20:00 UTC on April 29, 2021, which resulted in crippling a number of its essential services.”
The hackers could not access Hotbit wallets, but they did manage to breach the platform’s user database. Consequently, the Hotbit team advised clients to ignore all messages from organizations claiming to represent the exchange.
Since all normal operations have been suspended during ongoing maintenance, Hotbit has also advised that pending trading orders be canceled to prevent losses. Oslo Poor’s has also pledged to bear any losses associated with the funds included in the platform during the maintenance period.
Maintenance will last for at least seven days, according to Hotbit, with reports that investigation and system update could take up to two weeks.
Alex Zhou, Hotbit’s Security Manager, contacted users of the Telegram group on the exchange, claiming that the attack did not affect the user’s funds and said, “The attacker tried to break into the wallet server to steal the money, but the action was identified and blocked. With the success of the Hotbit risk monitoring system. All User funds are safe. ”
“At the same time, Hotbit is in the process of transferring all funds from the hot wallet to the cold wallet, and the full integration details can be seen in the chain,” he said.
In fact, data from the Ethereum Etherscan monitoring tool shows multiple token flows from one well-known Hotbit wallet to another address that currently has around $ 14 million in multiple altcoins.
However, judging by the comments on social networks and in the platform’s Telegram channel, time spent on maintenance raises serious concerns among Hotbit users.
Fears that this incident was a Hotbit withdrawal scam are clear. Earlier in April, two major stock exchanges in Turkey stopped operating and their executives hid millions of dollars in user funds. Both incidents led to mass arrests by law enforcement agencies, as well as the authorities’ plans to establish a central custodian bank for cryptocurrency exchange in Turkey.