Crypto Exchange BitoPro Hacked for $11M—How Did the Attackers Get In?

Crypto Exchange BitoPro Breach Explained: How a Wallet Upgrade Led to a $11M Crypto Heist

Crypto Exchange BitoPro – Taiwan-based cryptocurrency exchange BitoPro has confirmed a cyberattack that led to the loss of over $11 million from an old hot wallet during a system upgrade in early May. The incident was first brought to light by blockchain investigator ZachXBT, who flagged suspicious transactions on May 8.

According to a statement shared with CoinDesk, the breach occurred during a scheduled wallet system upgrade. BitoPro said it responded immediately by replenishing the stolen funds and migrating assets to new secure wallets to prevent further exploitation. Importantly, the exchange emphasized that user assets were not impacted and all core operations, including trading, deposits, and withdrawals, continued without disruption.

“Upon detection, we quickly launched an emergency response, securing assets by moving them to new wallets and blocking the attacker,” BitoPro stated.

Stolen Funds Laundered Through Privacy Tools

ZachXBT’s investigation revealed that the stolen crypto was funneled through decentralized exchanges and privacy-focused protocols, ultimately ending up in Wasabi Wallet, a popular Bitcoin mixing tool. Such laundering methods are commonly used by attackers to obscure the origin of stolen funds.

Transparency and Security Measures Enhanced

BitoPro noted that it is working closely with a third-party cybersecurity firm to investigate the breach and will soon publish new hot wallet addresses to ensure transparency. The company also highlighted that the majority of user funds are stored in cold wallets, which remain offline and are considered significantly more secure against cyberattacks.

A spokesperson reassured users, stating, “BitoPro’s virtual asset reserves are ample, and user assets remain completely unaffected.”

Founded in 2018 and operated by BitoGroup, BitoPro supports several major cryptocurrencies paired with the Taiwanese dollar (TWD). As of the last 24 hours, the platform recorded over $20 million in trading volume, according to market data.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.