Hackers Steal $35 Million in Bitcoin and Ethereum from Verus and B2
Crypto tokens were stolen wroth millions of dollars this week in a hack that bypassed cryptography protection.
Quick overview
- A recent attack on the Verus and B2 networks resulted in the theft of $35 million in Ethereum and Bitcoin within hours.
- The hackers exploited vulnerabilities in cross-chain protocols without breaking the underlying cryptography, raising concerns about security in the crypto market.
- Following the theft, Bitcoin and Ethereum experienced a decline in value, with Bitcoin dropping 0.86% and Ethereum falling 1% during early trading.
- Investor confidence has been shaken due to repeated hacks using similar exploits, complicating recovery efforts for the affected cryptocurrencies.
On Thursday, an attack on the Verus and B2 networks was detected, and hackers stole $35 million from Ethereum (ETH) and Bitcoin (BTC) in just a few hours.
Multiple cross chain systems were hacked this morning, and the thieves took off with millions in bitcoins and ether using a bridge exploit they have made use of in the past. The cryptography that protects these systems was never broken, but cross-chain protocols and crypto bridges were used to pull the money into the hackers’ accounts.
BTC/USDThe thieves were able to trick the systems without ever cracking the cryptography, and this is not the first time they have accessed funds illegally in this manner. What may be most alarming to the industry is that these attacks came at a time when crypto tokens were just starting to gain upward momentum and get back on their feet.
6-Hour Heist Hurts Struggling Crypto Market
In just six hours, thieves had stolen millions in cryptocurrency from the Verus, B2, AFX, and others. The theft was reported on Thursday morning and was partially to blame for Ethereum and Bitcoin values dropping in early trading for the day. Bitcoin lost 0.86% while Ethereum fell 1%. These coins are still positive for the last week but are dropping quickly enough that their gains may be wiped out soon.
For the past few weeks, the cryptocurrency market has been going through a bearish period, with Bitcoin falling from $80K to $60K. At the beginning of July, Bitcoin began a slow and gradual climb back up, and it managed to achieve a price point of $66,707 (BTC/USD) this week before the hackers knocked the price down.
Because Bitcoin and other cryptocurrencies are in a vulnerable state where they can be pushed around easily by different factors, these attacks could be very damaging to the market prices. Ethereum and other leading crypto tokens have had similar troubles to Bitcoin, and their fragility at this time may allow them to be carried by the bears very quickly.
The weeks of minor gains could help provide strength to Bitcoin and other tokens, though, keeping them from falling too far and too fast. Bitcoin’s trade volume fell 30% over the last day, meaning that investors are pulling back for now. If the theft does not have a major impact on the coin, then we could see investors come back soon and start pushing Bitcoin higher.
The theft revealed a weakness in security protocols for cryptocurrencies, and it may be one that Verus and B2 can try to remedy on their end. However, even if they do manage to fix the leaks and prevent future ones from happening in the same way, investor confidence has already been lost. It will be difficult to gain it back, especially since several hacks with the same exploit have taken place this year.
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