Earlier today, wallets tied to crypto exchange BtcTurk reportedly transferred more than $48 million worth of digital assets. This movement has raised suspicions of a potential security breach.
BtcTurk Suspends Crypto Withdrawals, Deposits
According to an X post by blockchain security entity Cyvers Alerts, outflows of over $48 million in cryptocurrencies were detected in “unusual activity” across multiple blockchain networks involving the Turkish exchange BtcTurk.
Cyvers Alerts noted that their system flagged alerts from blockchains such as Ethereum (ETH), Avalanche (AVAX), Arbitrum (ARB), BASE, Optimism (OP), Mantle (MANTLE), and Polygon (MATIC). Most of the transferred funds were deposited into two addresses. The firm added:
The attacker has completed the transfers and begun swapping assets. We’ve contacted the team, who are taking immediate action. Withdrawals and deposits are currently suspended.
In a separate X post, BtcTurk confirmed unusual activity in their hot wallets. The exchange stated that as a precaution, crypto withdrawals and deposits have been temporarily suspended.
BtcTurk reassured users that the majority of their funds are securely stored in cold wallets. Despite the potential security breach, the exchange emphasized that users’ funds remain safe due to its “robust financial structure.”
The platform added that crypto buying and selling, as well as Turkish Lira deposit and withdrawal transactions, will continue without interruption. It confirmed that all necessary security measures have been implemented to safeguard user assets.
It is worth recalling that last year, BtcTurk experienced a cyber attack that led to unauthorized access to some of its hot wallets. At that time, the exchange partnered with Binance to recover approximately $5.3 million in digital assets.
Are Crypto Security Mechanisms Still Vulnerable?
Over the past year, several high-profile crypto exchange hacks have raised concerns about security. In September 2024, crypto exchange BingX suffered a major breach, resulting in the loss of nearly $43 million in digital assets.
Earlier this year, Bybit experienced one of the industry’s largest hacks, with $1.4 billion stolen. The scale of the breach caused Ethereum (ETH) to drop as much as 5% immediately afterward.
Similarly, leading Indian exchange CoinDCX was targeted last month in a $44 million hack. However, CEO Sumit Gupta clarified that all user wallet funds were safe and unaffected.
The rising number of crypto exchange hacks – despite enhanced security measures – remains a concern for investors. These incidents also underscore the importance of cold storage wallets for individuals holding significant crypto assets. At press time, BTC trades at $119,253, down 2.1% in the past 24 hours.
