Ethereum News Today: BtcTurk Halts Crypto Transfers After $48M Hot Wallet Breach

BtcTurk, Turkey’s second-largest cryptocurrency exchange, temporarily suspended cryptocurrency deposits and withdrawals on August 14, 2025, following a breach in its hot wallet system estimated to have resulted in a $48 million loss. The decision was made after detecting unusual activity across multiple blockchain networks, including Ethereum (ETH), Avalanche (AVAX), Arbitrum (ARB), Base (BASE), Optimism (OP), Mantle, and Polygon (MATIC) [1]. While the majority of customer assets are stored in cold wallets and remain unaffected, the breach has raised concerns about the platform’s ongoing security measures.

According to reports, the stolen assets were swiftly moved and partially liquidated through platforms like MetaMask Swaps, with hackers consolidating the funds into a limited number of wallets, including two Ethereum addresses and a Solana (SOL) address [2]. Cybersecurity firm Cyvers reported that the attacker had transferred the assets to two addresses and initiated a series of swaps, highlighting the speed and sophistication of modern crypto heists [2]. The breach also triggered regulatory attention, as BtcTurk confirmed that local authorities had been notified and a full investigation was underway.

This marks the second significant security incident for the platform in under two years. In June 2024, BtcTurk reported unauthorized withdrawals totaling $55 million, and despite leadership changes—including the departure of CEO Özgür Güneri and the return of co-founder Kerem Tibuk—security vulnerabilities appear to persist [1]. The recurrence of breaches has led analysts to question whether centralized exchanges can maintain robust defenses against increasingly complex cyber threats. The Coincu research team noted that such incidents may drive regulatory pressure to enforce stricter hot wallet management protocols across the industry [1].

BtcTurk has emphasized that trading and Turkish lira transactions remain unaffected, and that the firm is committed to ensuring the security of its platform. CEO Faruk Fatih Özer stated that the suspension was a precautionary measure taken during routine checks, and that the exchange is working closely with cybersecurity experts to mitigate further risks [1]. However, the rapid movement of stolen assets across blockchains underscores the urgent need for real-time monitoring and faster response mechanisms to prevent future attacks.

The incident also casts a shadow over BtcTurk’s recent strategic moves, including a push for global expansion that began in July 2024. With stolen funds being actively liquidated, the platform now faces heightened scrutiny from both users and regulators, who may demand greater transparency and accountability in the wake of the breach. Analysts remain cautious, noting that while BtcTurk’s response appears to align with standard protocol, repeated incidents raise questions about the sustainability of its current security framework [2].

Sources:

[1] BtcTurk halts withdrawals amid suspected $48M crypto hack (https://cointelegraph.com/news/btcturk-withdrawal-halt-hack-report)

[2] Turkish Crypto Exchange BtcTurk Halts Withdrawals After (https://www.xt.com/en/blog/post/turkish-crypto-exchange-btcturk-halts-withdrawals-after-48m-hot-wallet-attack)

[3] Crypto Exchange BtcTurk Experiences $48M Worth of ... (https://www.coindesk.com/business/2025/08/14/turkish-crypto-exchange-btcturk-witnesses-usd48m-of-suspicious-outflows-amid-hack-fears)