Bratislava-based crypto exchange Eterbase, on September 10, reported a security breach in which it lost cryptocurrencies worth $5.4 million.
The Slovak crypto exchange revealed that six hot wallets on its platform were recently compromised by the hackers. They stole crypto holdings worth $5.4 million in Bitcoin, Ethereum, Algo, Ripple, Tezos and Tron, from those six wallets.
Hot Wallets Linked To Internet
Internet-linked hot wallets helped the Eterbase in its regular trading activities. But, it has been a well-known fact that hot wallets are vulnerable to hacking because they are associated with the internet.
While unveiling about its loss to hackers, Eterbase has stated, “Law enforcement authorities have been informed and we will assist as much as we can in the ongoing investigations.” Further, in its public statement, Eterbase has stated that the exchange has enough capital to meet all its responsibilities.
Eterbase Stopped Activities On Its Platform
As per the report, as soon as Bratislava-based crypto exchange came to know about the hack, it announced to suspend all kinds of activities on the platform, which includes trading, withdrawal and deposit, till September 10.
Eterbase, in its notification, has mentioned that till the time, it’s security system is being analyzed, the exchange will not resume any of the activities on the platform.
The Slovak crypto exchange, while talking about the recent hack in a series of messages on Telegram, stated that although it detected the scam, still was not able to do anything.
Later, the exchange decided to trace the movement of crypto assets that were stolen from its platform.
During the investigation, the Eterbase found the crypto assets stolen from the six of the hot wallets have been transferred to Binance, Huobi Global and Hitbtc.
Currently, the exchange connected all these other trading platforms and requested them to freeze the funds.
Eterbase is not the first European crypto exchange that has been hacked recently. In July 2020, Cashaa was also compromised and lost 336 Bitcoin, currently whose worth is around $3.1 million.