$450 million gone after stock market hack?

Exchange hacks are one of the well-known teething troubles in crypto space. The latest victim is Bilaxy, where the damage could amount to 450 million US dollars.

Less than three weeks after the spectacular attack on DeFi platform PolyNetwork, the largest hack in the crypto space to date with over $600 million worth of cryptocurrencies stolen, crypto exchange Bilaxy has fallen victim to a cyberattack. The exchange, which has been registered in Seychelles since 2018, is one of the more unknown representatives in the exchange landscape. However, the attack is hardly inferior to the one on PolyNetwork. According to initial estimates, the hack could amount to 450 million US dollars. Bilaxy has not yet commented on the speculation.

Hack on the Bilaxy Hot Wallet

In a Telegram post, the exchange reconstructed the incident. According to the post, the hack occurred between 6pm and 7pm on Saturday, August 28. In the process, the hacker managed to lighten the hot wallet by “about 295 ERC20 tokens”. The tokens were then transferred to an address that had already been flagged with a warning on Etherscan. Nothing else is known yet about the course of events.

The exchange then announced it would be performing “emergency maintenance” on the site and “moving hundreds of tokens from the hot wallet to cold wallets to secure the assets.” The case would be reported to law enforcement authorities. In addition, Bilaxy promised to “work with security institutions to conduct a thorough audit and investigation of system security in the coming days.” At press time, the website is still down.

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Clarification will take two weeks

According to Bilaxy, the work may take another two weeks:

Bilaxy has suffered heavy losses from the hack and the issue is yet to be resolved, which will take a lot of work and time to resume Bilaxy services. It may take at least two weeks to thoroughly investigate the hack and rebuild the system architecture to secure the system and assets.

Bilaxy has not commented on the amount of tokens stolen. Hoge Finance said in a tweet that $22 million worth of Hoge tokens alone were affected by the hack. Initial estimates suggest the hack could amount to $450 million. Whether Bilaxy will be as lucky as PolyNetwork remains to be seen, but should be unlikely. The attacker on the cross-chain platform quickly turned out to be a “white hat”, i.e. a well-intentioned hacker who took the stolen Assets eventually returned. PolyNetwork responded confidently and offered the hacker a position as a security consultant.