AscendEX loses $80M following ERC-20, BSC, Polygon hot wallet compromise

AscendEX, a crypto trading platform, suffered a loss $77.7million in a hot wallet compromise. This allowed hackers to access and transfer tokens over the Ethereum (ETH), Binance Smart Chains (BSC), and Polygon (POLY).

AscendEX promptly alerted its users of the thefts, and confirmed that hackers couldn’t access company cold wallet reserves.

22:00 UTC 12/11: We detected a few ERC-20, BSC and Polygon tokens being transferred from our hot bank. The cold wallet is not affected. Investigation underway. AscendEX will cover all funds affected by the incident.
— AscendEX (@AscendEX_Global) December 12, 2021

PeckShield is a blockchain security company and data analytics firm. It claims that around $60 million worth tokens were transferred via the Ethereum blockchain. According to EtherScan data, the Binance Smart Chain tokens and Polygon tokens are worth $9.2 and $8.5 million, respectively.

Loss @AscendEX_Global estimated: $77.7M ($60M on @ethereum @BinanceChain $18.5M @0xPolygon). Here is the list of the transferred-out assets and their amounts on @ethereum pic.twitter.com/VC4DKOwu4f
December 12, 2021 — PeckShield Inc. (@peckshield).

Some popular tokens that were stolen include USD Coin (USDC), USDT (USDT) and Shiba Inu(SHIB). AscendEX has yet to confirm the exact value of the tokens stolen by hackers.

The company also stated that it would help affected users to cover their losses from the attack.

Related: Bitmart hacks for $200M after Ethereum, Binance Smart Chain exploit

A hot wallet compromise that was hosted on the Ethereum and Binance Smartchain blockchains led to a similar attack on BitMart’s crypto exchange. The attack cost BitMart nearly $200 million.

Cointelegraph reported that the hack involved a simple transfer-out, swap and wash.

Bitmart: Transfer of stolen tokens Source: PeckShield

BitMart CEO Sheldon Xia confirmed that BitMart had suffered losses via Twitter. He announced a temporary halt to all withdrawals and deposits until further investigation was completed.

All tokens’ withdrawal and deposit functions will be resumed, step by step. This will also include progress in security testing and public-chain development recovery. We are moving forward and security will always be our first priority.
— Sheldon Xia (@sheldonbitmart) December 8, 2021

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