Since the cryptocurrency industry has risen to fame starting 2021, the number of scams and cybercrime incidents has increased in this particular space. Since the beginning of 2021, several cryptocurrency exchanges have been preyed on by hackers and opportunists.
No matter how secure and complex the security system the cryptocurrency firms may adopt, the hackers always manage to find a backdoor to perform a hack. At times, the hackers manage to find a flaw in the system, which they use to carry out the exploit.
This time around, it was the Bilaxy cryptocurrency exchange that ended up facing a hack by the hackers. Bilaxy is a digital asset trading platform that is based in Seychelles and has been considered a mediocre-level cryptocurrency exchange in the industry.
It was on Sunday, August 29, when the exchange made an announcement in regards to having faced a hack. The exchange reported that as a result of the hack, its hot wallets ended up getting compromised. So far, the exchange has not officially announced exactly how many cryptocurrencies it ended up losing as a result of the hack.
However, the sources are claiming that the exchange has ended up losing around $450 million worth of cryptocurrencies as a result of the hack. The sources have also confirmed that the funds have been lost in the form of several cryptocurrencies.
So far, several updates have been shared by Bilaxy exchange in response to the hack through its Telegram channel. Initially, the exchange reported that it was going through temporary maintenance, due to which the exchange had been stopped.
The exchange later revealed that they had to take the action in order to prevent the hack from taking place any further. The firm revealed that it had established that a hack was taking place within an hour of when the hack actually took place.
Therefore, the exchange took down its website and services in order to avoid any further exploitation from the hackers’ end. The first official announcement in regards to the exchange being hacked was made by Bilaxy through Twitter on Sunday.
The exchange reported that as the funds were stolen through the hot wallets, the customers/users must refrain from making any further deposits until further notice. The exchange requested the customers to not ignore the message and wait for an update from the exchange’s end.
According to one of the analytical firms, the hackers managed to fully hack and swipe the HOGE tokens from the hot wallets of the exchange. According to an estimate, only the HOGE stolen from the platform was worth $22 million.
For now, the exchange has not provided any clear information in regards to the hack, and the users are now growing concerned with every passing hour.