BitBNS is an India-based crypto exchange that was compromised on February 1, 2022. But this happened after ZachXBT, a crypto chain detective company, closed it happened on wednesday. Gaurav Dahake, the founder of the exchange, held an Ask Me Anything Session (AMA) on Youtube on March 1, which revealed a gap of 13 months since the hack. In particular, the founder cited the legal agency’s order as a reason not to reveal the hack to the public.
Scam tracker company, in its tweet, uploaded a screenshot of the BitBNS announcement while the platform claimed that the team took down the exchange for maintenance purposes. ZachXBT asked his followers to “call crypto exchanges @bitbns to hide the $7.5m hack from users.
Also, Gaurav Dahake had to discuss the amount of stolen funds in the session. But it was ZachXBT who revealed the amount of stolen crypto funds in the tweet.
The founder admitted that BitBNS communicated with law enforcement immediately after the hack was identified. The official advised, “users should be educated about the incident only after the investigation is complete or reaches a dead end.” Gaurav Dahake also confirmed that the platform recovered some of the stolen funds with the support of government agents and exchange of friends.
BitBNS Takes Offline Platform To Analyze Anomalies, Founder Says
In response to the allegations made by ZachXBT, the founder held an online session hours after an on-chain sleuth firm discovered the exploit. The founder urged;
Most of the big exchanges see this happening. Binance has a compromise fund. BitBNS also noticed a small incident. Before this happened, we had experienced irregular activity on the platform, when we decided to take the exchange offline for a few minutes to analyze the problem.
He continued that the investigation found that the prices of some coins had different values when selling and buying. And when users withdraw funds at that time, the team notes that different amounts of tokens are converted into Ethereum, which are sent to accounts that are further transferred to multiple addresses.
Since digital assets have grown recently, crypto companies have become a favorite place for cybercriminals to target. And this exploit is “not an abnormal activity” considering big players like Binance, KuCoin, and others have been compromised several times in the past, he said.
In response to ZachXBT’s accusations of hiding the hack, the founder asked that if there is any unusual activity on the network, a special team “is trying to fix checks and balances.” In addition, BTN takes an offline platform to analyze anomalies.
The platform became more cautious about security after the exploit, he admitted, saying the exchange has been running smoothly since the hack.
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