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A Chinese Crypto-Exchange Shuts Down Amid Hack Attempt

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In just a matter of 12 months, the cryptocurrency industry has experienced tremendous growth. An industry that only had 34 million users at the beginning of 2020 now has more than 106 million active users. This means that several cryptocurrency exchanges that have made a name in the industry are catering to millions of users.

As a result, the trading volume and investments are also experiencing all-time highs. Even though it is a good sign for the overall cryptocurrency industry, yet this tremendous growth gives birth to many risks. One major risk is the exploit and hack attempts on cryptocurrency exchanges with aim of stealing funds.

Over the course of 12 months, the number of hacks taking place on cryptocurrency exchanges has increased. Almost every week a new project or cryptocurrency exchange ends up being exploited or hacked by hackers.

This time, it is a major cryptocurrency exchange from China, which has fallen prey to a hack attempt. According to sources, the hack was attempted and someone tried breaching the platform’s security system on Thursday, April 29.

The name of the cryptocurrency exchange that faced an attempt of cyber-attack is Hotbit. Since the attempt, the Chinese cryptocurrency exchange has announced that they have shut down their services on a temporary basis.

According to the exchange officials, the cryptocurrency exchange is undergoing maintenance after it was met with a hack attempt.

The officials made the announcement around the temporary closure of the exchange’s services on Thursday, April 29. The official statement confirmed that a cyber-attack had taken place on the cryptocurrency exchange.

As a result, several services on the cryptocurrency exchange ended up paralyzed. Since then, cryptocurrency exchange users have been unable to access the basic services on the exchange.

The cryptocurrency exchange’s incident investigation teams have shared their preliminary report on the cyber-attack. They have confirmed that with the hack attempt, the hackers wanted access to Hotbit’s cryptocurrency wallets.

While the hackers failed to gain access to the platform’s hot wallets, the database of the exchange did end up compromised. The cryptocurrency exchange has been very clear and transparent about the entire matter.

They have shared all the information around the hack with their users to let them know exactly what had happened.

With reference to the database hack, the firm has requested the users pay no attention to any emails or communications they receive from Hotbit. The firm has clarified it will not be sending out any notifications or communications to the users.

Therefore, if the users receive any communication where the person or entity claims to be from Hotbit, they can ignore it. If possible, the users can even send an email to Hotbit attaching the email they receive from the anonymous source.

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