Bitrue Exchange Hacked, $4M Lost

Singapore exchange gone offline for maintenance, contacted local enforcement angencies and promised to start trading ASAP
28 June 2019   471

Singapore's crypto exchange Bitrue reported a hacker attack. Cardana (ADA) and the XRP tokens were stolen.

At approximately 1am June 27 (GMT+8), a hacker exploited a vulnerability in our Risk Control team's 2nd review process to access the personal funds of about 90 Bitrue users. The hacker used what they learned from this breach to then access the Bitrue hot wallet and move 9.3 million XRP and 2.5 million ADA to different exchanges.

Bitrue Exchange

According to representatives of the trading platform, on the night of June 27, the hacker took advantage of a vulnerability in the risk control system of the platform, gaining access to accounts of about 90 Bitrue users. Thanks to this, the hacker managed to withdraw 9.3 million XRP (almost $ 4 million) and 2.5 million ADA coins (about $ 230 thousand at the current exchange rate) to various exchanges.

Dear Bitrue Users,

First of all, please let us assure you that this situation is under control, 100% of lost funds will be returned to users, and we are reviewing our security measures and policies to ensure this does not happen again.

Bitrue Exchange

In addition, Bitrue stressed that the attack was soon identified and neutralized. The exchange also thanked Huobi Global, Bittrex and ChangeNow platforms for freezing assets related to malicious actions.

The attack was soon detected, and activity was temporarily suspended on Bitrue. We alerted the receiving exchanges about the situation, and wish to extend our thanks to HuobiGlobal, Bittrex Exchange and ChangeNOW for their help in freezing the affected funds and accounts.

Bitrue Exchange

In connection with the current situation, the exchange began maintenance and investigation of the incident, having gone offline.

Please note that at the time, due to uncertainty about the current situation, we stated that the exchange was going down for some unplanned maintenance. We apologize for this miscommunication with our users.

Bitrue Exchange

In addition, the exchange said that it had already contacted local law enforcement agencies for help and promised to resume trading operations soon.

Right now we are conducting an emergency inspection of the exchange and hope to be live again as soon as possible with log in & trading functionality. Withdrawals will be offline for a slightly longer period while we continue investigating the situation. We have also contacted the relevant authorities in Singapore to assist us in tracking down the culprit and retrieving the stolen funds. We will update everyone when we have more news to share.

Bitrue Exchange

Bitrue is at the 78th place in terms of trading volume.

Fake Trading Share to Reach 68%, - FTX Global

This figure, however, is significantly lower than what Bitwise's report and the discrepancy is explained by the difference in methodology
04 July 2019   897

The exchange of derivatives FTX Global and Alameda Research conducted a study that estimated the volumes of fictitious transactions (wash trades), presumably prevailing in many cryptocurrency exchanges.

The report says that 68.6% of trading volumes displayed by CoinMarketCap are fake. This figure, however, is significantly lower than what Bitwise Asset Management announced in March.

The discrepancy between the results in almost 30% of the authors of the new study is explained by the difference in methodology. So, FTX Global is sure that Bitwise used an too strict approach to data analysis, which is why a significant proportion of real trading volumes fell into the category of fake ones.

While our methods are not foolproof, we believe they paint the most accurate picture of the true nature of cryptocurrency trading volume that anyone has made publicly available as of yet.

FTX Global Team

The Alameda methodology involves verifying the authenticity of data on trading volumes on various exchanges based on six different parameters, including manual verification of information and comparison of order books.

FTX Global Website
FTX Global Website

In particular, the experts found out that some sites provided data on the volumes of foreign exchanges for their own, with a slight delay in time. Other platforms used more advanced techniques - for example, they introduced large fake volumes only against the background of many smaller orders, thus trying to hide the true state of affairs.

The main purpose of these tactics is to raise the platform higher in the CoinMarketCap rating, creating a false impression of its liquidity. It also sometimes allows for the ability to charge a higher listing fee.