BitoPro Loses $11.5 Million in Crypto Hack During System Upgrade

BitoPro, a crypto exchange based in the region, has confirmed a security breach resulting in the loss of $11.5 million. The incident occurred during a system upgrade on May 8, where hackers exploited an exposed wallet to drain funds, including Ethereum, Tron, and Solana, before laundering the proceeds through Tornado Cash. Despite the significant loss, BitoPro assured users that their funds remain secure and that withdrawals are unaffected.

The exchange initially attributed service disruptions to routine maintenance, leaving users confused when USDT withdrawals were suddenly frozen. It was later revealed that the breach occurred during a wallet system upgrade and asset migration. BitoPro responded by transferring assets to a new wallet and halting the attack with the support of a third-party cybersecurity firm. However, the three-week delay in publicly acknowledging the breach raised suspicions and undermined trust in the exchange's ability to safeguard user assets.

BitoPro's delayed disclosure and vague explanations exacerbated the situation, leading to rumors about the exchange's financial stability. The incident highlights the systemic vulnerabilities in the crypto industry, where centralized exchanges often struggle with transparency and adaptability. In contrast, decentralized exchanges like Cetus have shown more agile responses to security breaches, freezing stolen funds and returning them to users through community votes.

The crypto industry's response to security threats reveals both progress and gaps. Exchanges have implemented measures such as two-factor authentication and cold storage for funds, but human errors and lax security during upgrades continue to pose risks. BitoPro's recent hack underscores the need for better security practices and timely communication during crises. The incident serves as a reminder of the challenges facing the crypto industry in maintaining user trust and ensuring the safety of digital assets.