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BitKeep Wallet Suffers $1M Exploit: What’s Next for Affected Users?

by BSC News

October 22, 2022

chain

What are the next steps after the $1 million BitKeep exploit? How can investors reduce the risks of exploits? Learn more within this article!

BitKeep Hacked for $1M

BitKeep, a wallet provider, was hacked on Oct. 18 and lost more than $1 million. The project revealed the next steps after this exploit and will reimburse everyone impacted by this hack.

Following the incident, the wallet swap service has taken a few measures.

BitKeep temporarily suspended its services to prevent further threats to asset security. The project’s team is cooperating and consulting with other security authorities to recover the stolen funds. Moreover, all victims will be fully reimbursed. Lastly, the project incentivizes everyone to help identify the hackers and recover the assets by providing a reward to helping hands.

Investors affected by the exploit can apply for the compensation plan through an online portal launched Oct. 21.

Wallet Hacks in DeFi And Safety Solutions

In recent years, Decentralized Finance (DeFi) wallet hacks have increased dramatically. For example, TransitSwap, a multi-chain DEX aggregator, lost more than $21 million earlier this month due to a hacker exploiting an internal vulnerability in a swap contract.

Similarly, Mango Market, a DeFi protocol based on Solana, lost more than $100 million after a hacker increased the MNGO token's price by 5-10 times due to low liquidity.

And, of course, there was this month’s massive $580 million BNB bridge exploit, where hackers essentially were able to mint themselves 2 million new BNB of which, at last count, about $100 million worth was not yet recovered.

As a cryptocurrency investor, it is best to keep only a small amount of your holdings in an online hot wallet, like BitKeep, to reduce potential risks associated with holding coins in such wallets. A significantly safer way to store coins is by using an offline cold wallet with private key backups.

It is wise for investors to consider carefully where they are holding their virtual assets.

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