Cryptocurrency exchange exposed after attempt to hide hacker attack

A cryptocurrency brokerage hid a hacker attack on its premises for a year, leaving customers with no information about the matter, contrary to what the principle of transparency preaches. Despite the delay, the company was exposed and forced to admit the invasion.

Formerly Bitbns, current BNS, changed its image in February 2023 to consolidate in the Indian cryptocurrency market. In the country, companies operating in the market are still under regulatory pressure.

But even the change in image doesn’t erase the company’s past, whose systems had been invaded by criminals a year ago.

brokerage exposed

The year 2022 in the cryptocurrency market was marked by several scandals of brokers and platforms, which lost a lot of money and went bankrupt.

While much of the problem is due to the mismanagement of exchanges, others have also become targets of hackers.

One of them was Bitbns, which lost $7.5 million in a hacker attack and announced a break-in to the system. But even after returning to clients with its business, the brokerage ignored communication with clients.

The company didn’t count on investigator ZachXBT, famous for exposing cryptocurrencies scams, to uncover the case more than a year later. In a publication on his Twitter on Tuesday (28/02), the analyst called the brokerage to clarify the matter.

“Let’s call out cryptocurrency exchange bitbns for hiding a $7.5 million hack from its users on February 1, 2022 and then telling them it was “system maintenance.”

Let’s call the crypto exchange @bitbns for hiding a $7.5 million hack from their users on February 1, 2022 and then telling them it was “system maintenance”

0x24f361E1eeEdF29fd6D724C9393132D61c51ebB1 pic.twitter.com/a3aBqlgW0z

— ZachXBT (@zachxbt) February 28, 2023

CEO of cryptocurrency exchange that hid hacker attack made AMA with customers and confessed everything

The brokerage’s case covering up a hacker attack in India ended badly for the firm, which was pressured to schedule an AMA with clients.

CEO Gaurav Dahake was responsible for leading the live with clients when he confirmed that yes, his brokerage, currently BNS, was the target of a hacker attack a year ago. In an effort to reassure investors, he said the situation is not unusual and many major brokers have had the same problem.

He further cited that even Binance has had problems with hackers, citing the recent attack on BNB Chain as an example. Going forward, the brokerage executive reminded that since the case occurred 13 months ago, it should no longer affect the business of the company, which is still operating.

It is worth remembering that the Indian government remains attentive to the cryptocurrency market and keeps a close eye on the companies in the sector. That is, it is not clear whether the newly revealed hacker attack can affect the local market.