HitBTC breach results in 40 million stolen DVPN coins
2 min readTL;DR Breakdown
- According to the recent Tweet by Sentinel Network, nearly 40 million native DVPN tokens have been stolen in a recent breach.
- The theft from HitBTC have left people questioning its security and the safety of their assets.
- The HitBTC breach occurred due to a weakness in the BTC exchange’s mnemonic phrase, as reported by Sentinel Network.
The cryptocurrency world is still in its budding phase. A lot of institutional money is flowing in as people understand that they are gradually adopting cryptocurrencies and blockchain technology. Many vulnerabilities and regulation issues often land crypto exchanges and blockchain-based firms in trouble.
On Friday, it was revealed by the Sentinel Network that a HitBTC breach resulted in a loss of over 40 million DVPN tokens for the centralized exchange. Further details on the HitBTC breach revealed that the breach actually happened due to a weakness that the attackers figured out in the mnemonic phrase.
HitBTC breach due to mnemonic compromise
Dear Community,
It has come to light that the CEX @hitbtc has exposed their mnemonic phrase resulting in 40million $DVPN being stolen from its users.This is completely out of our control, HitBTC had delayed the distribution of funds to users and compromised their own mnemonic.
— Sentinel
(@Sentinel_co) August 20, 2021
(@Sentinel_co) According to the authorities of Sentinel Network mentioned that the HitBTC breach was not a consequence of the carelessness of the Network. Still, the exchange had delayed their own mnemonic codes. The P2P bandwidth marketplace convinced the users of the DVPN application to trust the application and be rest assured of its safety.
In response to the accusation by the Sentinel Network, the BTC exchange application revealed that Sentinel is deceiving its users and trying to hide its technological flaws and shortcomings.
“HitBTC fully completed the swap part and have sent the assets to your team, but you failed to securely deliver on your part.”
HitBTC’s note to Sentinel Network
In a series of images uploaded by HitBTC, the organization revealed that the Sentinel Network is full of vulnerabilities. They further added,
“Your technology is neither trustworthy nor secure because your new blockchain and software have not been thoroughly tested.”
