AscendEX suffers a $80M loss after the ERC-20, BSC, and Polygon hot wallet compromise

A hot wallet compromise at crypto trading platform AscendEX resulted in a $77.7 million loss, allowing hackers to access and transfer tokens hosted on the Ethereum, Binance Smart Chain, and Polygon blockchains.

AscendEX proactively warned its users about the stolen funds shortly after the discovery, confirming that the hackers were unable to access the company’s cold wallet reserves.

In addition, around $60 million worth of tokens. That transferred over the Ethereum blockchain. According to PeckShield, blockchain security, and data analytics firm. Moreover, EtherScan data shows that tokens stolen from the Binance Smart Chain and Polygon are worth $9.2 million and $8.5 million, respectively.

USD Coin (USDC), Tether (USDT). And Shiba Inu among the popular tokens stolen in this hack (SHIB). AscendEX, on the other hand, has yet to confirm the exact value of the tokens stolen by the hackers.

Company stated that it will compensate users

The company also stated that it will assist affected users by covering their losses as a result of the attack.

A similar attack on crypto exchange BitMart last week, on December 5, resulted in a loss of nearly $200 million due to a hot wallet compromise hosted on the Ethereum and Binance Smart Chain blockchains.

The hack was a simple case of transfer-out, swap, and wash:

While BitMart CEO Sheldon Xia confirmed the losses via Twitter, he also announced a temporary halt to all withdrawals and deposits while the company conducts further investigations

In addition, The deposit and withdrawal function of all tokens resumed step by step. Along with the recovery progress of security testing and public chain development. Moreover, no worries, we are marching forward, security will be always the first priority.

— Sheldon Xia (@sheldonbitmart) December 8, 2021