BtcTurk suspends withdrawals after $48.9M hot wallet breach

The Turkish cryptocurrency exchange BtcTurk has suspended all withdrawals and deposits following the detection of suspicious transactions involving approximately $50 million in digital assets. The freeze was announced on August 14, 2025, after blockchain analytics firms, including PeckShield, identified unusual movements from the platform’s hot wallet. The transfers primarily involved Ethereum, along with tokens from Avalanche, Arbitrum, and other networks, with the total estimated value at around $48.9 million [1][2][3].

In response, BtcTurk froze user transactions to prevent further losses and preserve the integrity of its remaining funds. The exchange has not yet disclosed the nature of the breach or when services will resume, urging users to monitor official communications for updates. The company has emphasized that most client assets are stored in cold wallets and that its strong financial position should prevent user account losses [1][2].

This is not the first security incident involving BtcTurk. In 2024, the exchange suffered a major breach in which $54 million, primarily in Avalanche, was stolen. The recurrence of large-scale unauthorized transfers raises concerns about the platform’s security protocols and its ability to prevent future attacks. The situation has also intensified scrutiny of the broader crypto industry, which has experienced a string of high-profile breaches in recent months [1][3].

In 2024, attacks on centralized exchanges and decentralized finance (DeFi) protocols resulted in over $2.2 billion in stolen assets, marking the worst year on record for such incidents. This trend has continued into 2025, with the Bybit exchange reportedly suffering a $1.4 billion loss in February related to Ethereum-linked assets [1]. Cybersecurity experts warn that attackers are increasingly employing sophisticated techniques, including exploiting technical vulnerabilities and using social engineering, to bypass security measures [3].

BtcTurk has confirmed it is cooperating with cybersecurity experts to trace the stolen funds and mitigate the damage, though it has not yet outlined any compensation plans for affected users. The company has also notified the relevant authorities and implemented additional security measures during the ongoing internal review [2].

Industry observers suggest that the withdrawal suspension may temporarily erode investor confidence, especially among regional users who rely on BtcTurk for daily transactions. Analysts highlight the incident as a further illustration of the challenges in securing crypto assets and the need for stronger regulatory oversight and internal controls [1][2].

The broader crypto market has reacted with mixed signals, with some digital assets showing slight declines while others remain stable. While the event is unlikely to trigger a major market correction, it serves as a stark reminder of the vulnerabilities that persist in digital finance. The outcome of BtcTurk’s response to this breach may set a precedent for how other exchanges handle similar incidents in the future [3].

Source:

[1]title1: BtcTurk suspends crypto transactions after $48M hack linked hot wallet breach

url1: https://www.ainvest.com/news/btcturk-suspends-crypto-transactions-48m-hack-linked-hot-wallet-breach-2508/

[2]title2: Hacker hits BTCTurk exchange for $48M in hot wallet exploit

url2: https://www.mitrade.com/au/insights/news/live-news/article-3-1040140-20250814

[3]title3: Fomoed News

url3: https://www.fomoed.io/news/hacked-again-btcturk-suspends-withdrawals-after-49-million-in-suspicious-transfers

[4]title4: Sanctioned Crypto Exchange Garantex May Already Be One Step Ahead of the U.S.

url4: https://crypto-economy.com/sanctioned-crypto-exchange-garantex-may-already-be-one-step-ahead-of-the-u-s/