Crypto wallet provider, BitKeep, has come under a cyberattack after a hacker stole $1 million from its platform by exploiting its swap feature.
However, the company has announced that it will pay back the victims of the attack from its pocket. This month has been challenging for many DeFi projects. There has been a significant spike in cyber hacks and exploits on them this month.
Blockchain security company PeckShield was the first to announce the hack by sharing steps the public can follow to keep their wallet safe.
BitKeep made an announcement today, revealing that its developers have contained the issue to reduce further exploits. The company also stated that the cyber hacker attacked through the BNB chain, and it’s not the first time such is happening.
BitKeep’s BNB chain was under attack during the first week of October, resulting in the loss of over $100 million from users’ wallets.
Hence, the company has released some steps users can follow to prevent future damages and possibly bring the hacker to justice. BitKeep has suspended its swap service to avoid another security loophole while crypto security firms are working with the wallet provider to track down the hacker.
The company plans to pay back victims with its funds, but details on how it intends to do that are yet to be released. BitKeep will give more information on how victims of the hack will get their money back, but the company wants a complete synopsis of the attack first.
BitKeep is one of the common crypto wallets used in the DeFi space because the platform supports many chains. Users can buy and sell their crypto tokens across different chains, which is highly convenient. It is worth noting that the swap feature remains a common source of exploits for hackers.
Transit Swap is the most recent platform to suffer an exploit through its Swap feature a few weeks ago. This year has the highest number of attacks as bridges have been subject to more exploits than in previous years. Some of the notable attacks include Wormhole and Ronin bridge hacks.
DeFi Hacks On The Increase This Year
Cyber hackers have increased their focus on the DeFi space this year. According to blockchain security firm Chainalysis, hackers have stolen more than $3 billion from the DeFi space this year, with nearly $720 million stolen this month alone. However, Chainalysis revealed that DeFi companies were the reason for a growth in cyber hacks.
Crypto security firm, CertiK, added that most of the issues of cyberattacks in 2021 were due to centralization issues. But this year, hackers have discovered loopholes they can exploit in bridges, with attacks on Harmony’s Horizon bridge and the Nomad bridge being the biggest casualties.
