HomeNEWSBitkeep wallet endures $1 million exploitation

Bitkeep wallet endures $1 million exploitation


Follow us


Popular DeFi multi-chain crypto wallet, BitKeep wallet has suffered an exploitation. The crypto wallet confirmed the exploitation in a Tuesday Twitter post on its handle. According to Bitkeep, the exploitation led to loss of over $1 million.

Prior to the announcement of the hack by Bitkeep, leading blockchain security company, PeckShield had earlier hinted the community about the situation. Peckshield in its announcement, advised Bitkeep wallet users to follow a series of steps to guarantee their safety.

Later, Bitkeep, in a Twitter post, confirmed the exploitation. According to the protocol, its the development team had made concerted efforts to address the issue. Bitkeep added that the exploitation materialized on the BNB Chain, thereby making it the second time this month that the chain will become vulnerable to exploitation. Recall that the BNB chain, was, in early October, compromised, resulting in a loss of 2 million BNB, equivalent to over $500 million. However, about $7 million has been frozen already from the stolen funds.

BitKeep says attacker targeted its swap feature

According to the Bitkeep, the exploitation targeted the swap feature of the wallet. It, however, highlighted several measures to minimize the level of damages and tame the perpetrator of the exploitation. In the update, BitKeep announced the suspension of its Swap service. The crypto wallet provider says it took the decision to prevent similar security breach on its network. Also, it reaffirms its commitment to working with security agencies to track down the hacker.

Additionally, the firm encourages anyone with information on the hacker or how to recover the funds to contact its team. It promised to reward whoever assist its team in recovering the funds. Furthermore, Bitkeep intends to reimburse users who lost funds to the attack. However, it is yet to give details on the reimbursement plan.

Increasing exploitation of DeFi protocols

Indeed, regrettably, the crypto space has continued to endure increasing rate of exploitations. According to a popular blockchain security firm, Chainalysis, the sphere, had, so far, lost, over $3 billion to the menace this year. Just this month, it lost over $718 million through numerous exploitations on 11 DeFi protocols. Chainalysis, in its latest report, fingered DeFi projects as the architect of the increase in crypto exploitations.

Also, the United States Federal Bureau of Investigation (FBI), upheld the submission by Chainalysis, urging investors to become more wary of DeFi protocols. Further, the International law enforcement agency admonished all DeFi protocols to upgrade their respective security mechanisms.

Read More:

David Idowu
David Idowu
David Idowu is a crypto reporter and trader with wealthy years of experience. He believes that blockchain technology has numerous opportunities that are begging for proper utilization. Away from work, David is either reading about World Politics, History or Tech Innovations.

Most Popular