Exchange firm Hotbit hacked, operations paralyzed

crypto scams

TL;DR Breakdown

  • Hotbit exchanged operations paralyzed after cyber attack.
  • Exchange ready to build all servers afresh.
  • Hotbit cyber attack, another exit scam?

Another crypto exchange firm (Hotbit) that serves at least 2 million users globally has announced that it has suffered a severe cyber-attack, leading to the firm shutting down its operation temporarily.

In its announcement, the firm noted that although the attacker tried to hack into the firm’s wallets, the attempt was identified and stopped by the exchange firm’s risk control system.

Hotbit then said that its team has shut down its entire operation for inspection and restoration, which would take at least seven days. They assured users that all assets are safe and secure.

Hotbit future security plans

It remains a fact that security issues have been the pain of the blockchain industry. It is why reports of hack attempts and scams can never be ousted entirely as far as crypto and blockchain are concerned.

Hotbit, amidst these severe setbacks, has acknowledged its work is cut out as it explains that it would do two primary things to forestall similar cyberattacks in the future.

Firstly, Hotbit said it would completely rebuild all servers from scratch, noting that its 2 million registered users have a huge service system architecture of more than 200 servers online.

This would give room for a completely fresh start for the exchange firm and users.

Secondly, Hotbit notes that the hackers maliciously deleted users’ database after its unsuccessful attempt at stealing assets. They note that these data are backed up from time to time. However, the hacker might have polluted the data during the attack.

On this note, the exchange said it would conduct a comprehensive inspection of the overall data. Once an anomaly is detected, Hotbit will perform an accurate reconstruction to ensure that all user data is accurate.

Hotbit cyber attack, another exit scam?

In the wake of happenings in Turkey with exchange firms being indicted and investigated for fraud on users, fears over the attack on Hotbit to be an exit scam are understandable.

Two Turkish crypto exchange are being investigated in the country, with their executives fleeing with millions of dollars in user funds.

Both incidents have resulted in the arrest of other executives of these firms and the Turkish government looking at stricter regulation of crypto operations in the country.

Muhaimin Olowoporoku

Muhaimin Olowoporoku

Muhaimin loves writing on crypto news aside from being a crypto enthusiast. He has a knack for analysing issues and updating people on what's happening around the globe. He believes that blockchain and cryptocurrency are the most useful systems of mutual trust ever devised.

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