Taiwan-Based Exchange Victim of Cyberattack on Hot Wallet
BitoPro, a leading cryptocurrency exchange based in Taiwan, has confirmed a cyberattack on an outdated hot wallet, resulting in losses exceeding $11 million. The breach occurred on May 8 during a scheduled wallet system upgrade, and was initially reported by blockchain investigator ZachXBT.
Exchange Responds Swiftly to Contain Damage
The exchange immediately took action, stating, “Upon detection, we quickly launched an emergency response, secured assets by moving them to new wallets, and blocked the attacker.” According to BitoPro, user assets remained completely unaffected, and all services continued to function normally, including trading, deposits, and withdrawals.
The stolen funds were reportedly funneled through decentralized exchanges and mixed via Wasabi Wallet, a known Bitcoin privacy protocol, to obscure the attacker’s tracks.
User Funds Fully Protected and Replenished
BitoPro assured its community that it had replenished the lost assets from its reserves and emphasized that the exchange’s virtual asset reserves are more than sufficient to handle such incidents.
“User assets remain fully protected and unaffected. BitoPro holds the majority of funds in offline cold wallets, ensuring higher protection against cyber threats,” the company stated.
Investigation Underway with Cybersecurity Partner
To enhance platform security and maintain transparency, BitoPro is working with a third-party cybersecurity firm to investigate the breach. The company also announced plans to publish new hot wallet addresses in the coming days.
“Transparency is a top priority. We will publish the updated wallet addresses for public verification,” a spokesperson confirmed.
Exchange Continues Normal Operations
Despite the breach, BitoPro has continued to operate without interruption. The platform, operated by BitoGroup, has served the Taiwanese crypto market since 2018, and supports major cryptocurrencies paired with the New Taiwan Dollar (TWD). In the past 24 hours alone, BitoPro recorded over $20 million in trading volume.
Conclusion
The incident highlights the ongoing vulnerabilities of hot wallets, even during routine upgrades. However, BitoPro’s rapid response, transparent communication, and commitment to user protection have helped maintain trust among its user base.
As the investigation continues, the exchange’s proactive steps and reserve strength demonstrate a strong model of risk management in the evolving digital asset industry.