Crypto exchange BigONE faced a significant setback this week when it fell victim to a third-party attack, resulting in estimated losses of $27 million. The attack, which was executed through a supply chain exploit, allowed the attackers to manipulate BigONE’s server logic and withdraw funds.
Initially reported by blockchain security platform SlowMist, it was revealed that the production network of BigONE was compromised. This breach enabled the attackers to modify the operating logic of account and risk control servers, ultimately facilitating the unauthorized withdrawal of funds.
Following the incident, BigONE confirmed the attack and reassured its users that all private keys remained secure and user assets were safe. Additionally, the exchange pledged to cover all losses incurred as a result of the attack.
In collaboration with SlowMist, BigONE is actively tracing the hacker’s addresses and monitoring fund movements to mitigate further damage. The exchange is also implementing additional security measures to prevent similar incidents in the future.
The attackers targeted BigONE’s production network, exploiting the supply chain vector to gain access to the exchange’s infrastructure. By tampering with the logic surrounding risk management and account operations, the attackers were able to siphon funds exceeding $27 million.
According to CertiK Alert, the exploiter extracted approximately $4 million in ETH and various other tokens. The attacker swiftly converted the stolen funds into TRX, BTC, ETH, and SOL, as confirmed by Lookonchain data.
To address the losses and facilitate compensation, BigONE has activated its internal security reserves, which include BTC, ETH, USDT, SOL, and XIN tokens. The exchange is also securing external liquidity through borrowing mechanisms to restore the platform wallet promptly.
Despite the security breach and resulting losses, BigONE remains committed to safeguarding user assets and enhancing its security protocols. The exchange’s proactive response to the incident underscores its dedication to maintaining a secure and reliable trading environment for its users.