Ethereum News Today: Hackers Steal $23M from BtcTurk and Swap BTC to ETH via DeFi

In late August 2025, Turkish cryptocurrency exchange BtcTurk experienced a major security breach in which over $23 million worth of digital assets were stolen from its wallets. The attacker executed a swift and coordinated response by converting the stolen Bitcoin (BTC) into Ethereum (ETH) within a short timeframe, leveraging decentralized finance (DeFi) protocols to obscure the origin of the funds [2]. The move was identified and tracked by blockchain analytics firm Lookonchain, which reported suspicious transactions linked to the theft [1].

The hacker is believed to have accessed BtcTurk’s hot wallets and immediately initiated a large-scale BTC withdrawal. These funds were then swapped for ETH across various decentralized exchanges, a tactic that has become increasingly common among cybercriminals seeking to launder stolen assets [3]. The speed and precision of the attack suggest a pre-planned strategy, with the primary objective of moving the assets out of the exchange’s control and into a more liquid and anonymous form [1].

BtcTurk responded by temporarily halting all deposit and withdrawal operations to investigate the breach and minimize further losses. While the exchange has not yet issued a detailed public statement, its actions align with standard protocol following a major cyber incident. The company’s next steps, including potential compensation for affected users and long-term security improvements, remain under scrutiny [2].

Industry experts have pointed to the use of DeFi platforms as a growing challenge in tracking illicit transactions. Ethereum’s smart contract capabilities and decentralized architecture allow for rapid and complex fund movements, making it harder for investigators to trace stolen assets through multiple transaction layers [3]. The incident highlights a broader issue within the crypto industry: the increasing sophistication of cybercriminals, who exploit the speed and anonymity of blockchain technology to execute large-scale thefts.

Security professionals have reiterated the importance of strong authentication measures, such as two-factor authentication (2FA), and the use of hardware wallets for both exchanges and individual users. Phishing attacks and compromised credentials are frequently cited as initial points of entry in such breaches, though the exact method of infiltration in this case has not been disclosed [2]. As the attack demonstrates, even well-established platforms can fall victim to determined and technically proficient hackers.

The BtcTurk incident has reignited discussions around the need for stronger regulatory and technical safeguards in the cryptocurrency sector. With growing adoption comes greater exposure to cyber threats, and the theft underscores the urgency of continuous improvements in platform security, particularly for exchanges handling significant transaction volumes [3]. The response from BtcTurk, both in the immediate aftermath and in the long term, will be critical in restoring trust and setting a precedent for how exchanges handle such incidents in the future.

Sources:

[1] title1.............................(https://coinmarketcap.com/community/articles/689ded038bd3b9499f4ce93b/)

[2] title: Shocking $23M Stolen Funds Swapped for Ethereum (https://intellectia.ai/news/crypto/btcturk-hack-shocking-23m-stolen-funds-swapped-for-ethereum)

[3] title: BtcTurk Hacked for Over $23M as Attacker Swaps Stolen ... (https://blockchain.news/flashnews/btcturk-hacked-for-over-23m-as-attacker-swaps-stolen-funds-into-eth-on-chain-trading-alert)