BitKeep Wallet Loses $1 Million, Hacker Exploits Swap Feature

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DeFi
BitKeep Wallet Loses $1 Million, Hacker Exploits Swap Feature

A hacker stole $1 million from BitKeep by exploiting its swap feature. Bitkeep issued a statement stating that the company would compensate all victims affected by the attack from their reserves.

The Unfortunate BitKeep Attack

A hacker drained more than $1 million from BitKeep wallet using the wallet’s swap feature. PeckShield, a blockchain security company, was the first to draw attention to the hack, asking users to follow steps to ensure they safely executed their funds and transaction activities.

BitKeep tweeted the excruciating remarks on Twitter, stating:

“Dear BitKeep Swap user, BitKeep Swap was hacked, and our development team has managed to contain the emergency. The hacker has been stopped. The attack happened on BNB Chain, causing a loss of about $1 million.”

On October 18, BitKeep issued its update, stating that the development team had managed to contain the emergency. The platform also mentioned that the incident took place on the BNB Chain. Unfortunately, this is not even the first time this month that the BNB chain has been compromised. In the first week of October, an attack exploited it for $100 million.

The wallet provider has issued a plan involving steps to mitigate further damage and bring the hacker to a fair trial. They also suspended the BitKeep Swap service to ensure no other security breaches exist and are collaborating with law enforcement to hunt down the hacker.

“For this accident, BitKeep is taking the following measures: 1) suspend Bitkeep Swap service to ensure that there are no other security issues. 2) communicate and cooperate with major security agencies to track down the hackers and do our best to recover the stolen assets. “

The company will pay back users who’ve already lost money. However, the details of the reimbursement plan have not yet surfaced. BitKeep will provide more information as it learns more about the attacker.

Decentralized Finance Platform Hacks on the Rise

This October has been challenging, significantly increasing Decentralized Finance platform hacks and exploits. Just recently, Mango Dao also faced a $100 million breach. Mango Markets confirmed that its treasury had been successfully hacked. Based on the DeFi Platform’s tweet, malicious attackers stole a large number of digital assets by manipulating the price of an oracle.

The DeFi protocol, later on, reached a consensus to issue $47 million as a bug bounty asking the attacker to return $67 million. Four major security breaches were reported, including the Mango attack on the same day. The report set a new world record for the most crypto security attacks in 24 hours. Among the attacks was Rabby Swap, which suffered a $200,000 loss due to a smart contract exploit.

ParaSwap was discovered to have a susceptible deployer address that resulted in a fund leak across multiple chains. Furthermore, Temple Dao’s stax.fi was breached, and the attackers stole approximately 1,831 ETH.

The Future Safety of DeFi

Despite blockchain technology’s tokenomics holding true to safety and security of funds by users, recent times show a sharp increase in security breaches. It is however worth noting that with each security breach, more security measures are put in place, making the distributed ledger technology safer.