Saturday, February 4, 2023

Hotbit Server Goes Down After Suffering A Cyberattack

Hotbit, a Chinese crypto exchange, was recently compromised due to which the exchange had to shut its services for a time being.

The crypto exchange with over 2 million users worldwide released a notification, stating, “Hotbit just suffered a serious cyber-attack starting around 08:00 PM UTC, April 29, 2021, which led to the paralyzation of a number of some basic services.”

The hackers were not able to get access to the wallets on the exchange, but they did get their hands on the database, therefore, Hotbit has asked its customers to not respond to any communications claiming to be its representative.

Although the exchange’s wallet did not lose any money, the database stolen by the hackers could become a threat to the exchange. As the scammers could create loopholes using those databases. For instance, if the organization recovers its database, which it believes to clean copy of the actual one, then that could allow the hacker to again enter into the wallet server. As those databases files act as a door for the hackers.

The exchange believes that within 7-14 days all the lost data would be recovered by Hotbit.

Along with its notification, the Chinese exchange released additional information regarding the affected orders and products:

(i) Leveraged ETF products

(ii) Customer’s Open Orders on Hotbit

(iii) All daily routine income distribution

While making an announcement on Hotbit’s Official Telegram group, Alex Zhou, the chief security officer of the crypto exchange, said that the hacker attempted to trace the wallet server on its exchange but was not successful. However, as soon as the Chinese crypto exchange found out about the attack it prevented the server. Zhou further claims that all of the users’ funds on its exchange are now safe.

A report released by Ethrescan stated that one of the customer wallets of Hotbit has transferred multiple tokens worth around $14 million to another address.

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