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Blockchain investigator ZachXBT uncovered a potential exploit at BitoPro, a leading Taiwanese cryptocurrency exchange, involving $11.5 million drained from its hot wallets. The incident targeted multiple blockchains, including Ethereum, Tron, Solana, and Polygon, raising alarms across the crypto community about exchange security.
The Heist Unraveled
ZachXBT’s analysis revealed that the attacker sold stolen assets on decentralized exchanges (DEXs) and laundered them through privacy protocols like Tornado Cash and THORChain. Some funds were converted to Bitcoin and moved to Wasabi Wallet, a privacy-focused mixing service. This complex operation pointed to a deliberate and sophisticated exploit, prompting urgent questions about BitoPro’s defenses.
BitoPro initially attributed service disruptions to “maintenance,” a move that sparked criticism for lack of transparency. Later, the exchange admitted the breach occurred during a wallet system upgrade, with an attacker exploiting an old hot wallet during internal fund reallocation. BitoPro insisted user withdrawals remained unaffected and that its reserves were sufficient to cover the loss.
Community Backlash and Trust Issues
The exchange’s delayed response fueled skepticism. Reports of users struggling to withdraw USDT heightened concerns about BitoPro’s liquidity and reliability. ZachXBT’s investigation amplified scrutiny, with many in the crypto community praising the sleuth for pushing the exchange to acknowledge the issue. BitoPro committed to sharing new hot wallet addresses for external audits, but no further updates on the investigation or fund recovery have been provided.
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This breach highlights ongoing vulnerabilities in centralized exchanges, drawing comparisons to other recent crypto heists. BitoPro’s initial silence has ignited debates about the need for immediate transparency when security incidents occur.
Also Read: PeckShield: Crypto Scams Drop 40% in May 2025 with $244M Stolen
What Lies Ahead?
The breach highlights the dangers of hot wallet storage and the critical need for strong security practices. BitoPro’s next moves—whether tracking the stolen funds or reassuring users—will be pivotal in restoring confidence. The $11.5 million theft serves as a sharp reminder of the vulnerabilities centralized crypto platforms face.
FAQs
What happened in the BitoPro hack?
An attacker drained $11.5 million from BitoPro’s hot wallets across Ethereum, Tron, Solana, and Polygon, as uncovered by ZachXBT.
How did ZachXBT discover the exploit?
ZachXBT tracked suspicious outflows, identified laundering through DEXs and privacy protocols, and highlighted the issue publicly.
Is BitoPro safe to use now?
BitoPro claims user funds are secure and withdrawals are operational, but some users reported issues withdrawing USDT.
How can exchanges prevent such hacks?
Exchanges can bolster security with cold wallet storage, regular audits, and transparent communication during breaches.
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