BigONE Loses $27 Million in Hot Wallet Breach, Vows to Reimburse Users

Crypto exchange BigONE recently fell victim to a significant security breach, resulting in an estimated loss of $27 million. The incident, detected by blockchain security platform SlowMist on July 16, involved a compromise of the exchange's hot wallet infrastructure. The attacker modified the operating logic of account and risk control-related servers, enabling unauthorized withdrawals. BigONE confirmed the breach after its real-time monitoring system flagged abnormal asset movements, attributing the incident to a third-party attack. Despite the breach, the exchange assured users that all private keys remained secure and that the attack path had been identified and contained to prevent further losses.

The stolen funds included 120 BTC, 350 ETH, and over 8 million USDT across four networks. BigONE is collaborating with SlowMist to trace the attacker’s wallet addresses and monitor the movement of the stolen assets. In a statement, BigONE vowed to cover all user losses using its internal security reserves, aiming to ensure that user assets remain intact while investigations continue. Following a temporary suspension, the platform restored its services, with BigONE exec Alex Ash confirming the successful completion of a system upgrade and the resumption of deposit and trading services.

The incident comes days after decentralized trading platform GMX was exploited for $42 million. The hacker returned $40.5 million less than 48 hours after the exploit, keeping a profit of about $4.5 million. The penetration vector included a re-entrancy vulnerability in GMX’s V1 smart contracts, allowing the perpetrator to manipulate GLP token prices to drain funds. GMX offered a 10% white hat bounty in exchange for the stolen assets, which the hacker accepted. GMX confirmed its V2 protocol was not affected by the incident.

The breach at BigONE has raised concerns about the security of hot wallets and the potential for third-party attacks. The incident highlights the need for exchanges to implement robust security measures and continuously monitor their systems for any signs of unauthorized activity. The exchange's prompt response and commitment to reimbursing user losses demonstrate its dedication to maintaining user trust and security. However, the incident also underscores the ongoing challenges faced by the crypto industry in safeguarding digital assets against sophisticated cyber threats.