BtcTurk Disrupts Withdrawals After Suspected $48 Million Multi-Chain Hack

BtcTurk Suspends Withdrawals Amid Major Multi-Chain Hack, Losses Could Exceed $50 Million

BtcTurk, one of Turkey’s largest and oldest cryptocurrency exchanges, has halted all withdrawals following what experts believe to be a sophisticated multi-chain cyberattack that may have cost the platform more than $50 million in digital assets.

The breach, which targeted multiple blockchain networks including Ethereum, Avalanche, Arbitrum, Base, Optimism, Mantle, Polygon, and Solana, was first flagged by blockchain security firm Cyvers. The incident has sparked widespread concern among traders and the broader crypto community, as the scope of the attack suggests a high level of technical skill and planning.

How the Attack Unfolded

According to initial findings, the attack began with suspicious outflows from several of BtcTurk’s hot wallets – cryptocurrency wallets connected to the internet for daily operations. These wallets were reportedly compromised, enabling the attackers to siphon large quantities of tokens across multiple blockchain ecosystems.

Security analysts believe that the majority of the stolen assets were funneled into just two primary wallet addresses controlled by the hacker. In at least one case, the attacker used MetaMask swaps to convert the stolen tokens into Ethereum (ETH) almost immediately after the breach, a move experts say was likely aimed at consolidating and obfuscating the funds before laundering them further.

Source: X

One compromised wallet conducted a series of rapid asset swaps, converting stablecoins, meme tokens, and other altcoins into ETH. This not only helped the attacker centralize the loot but also complicated the tracing of funds across decentralized exchanges.

Despite BtcTurk’s swift decision to suspend user withdrawals, the attackers were still able to move additional assets from hot wallets after the freeze was enacted – suggesting a complete compromise of wallet security and private keys.

Estimated Losses Could Grow

As the investigation continues, blockchain trackers estimate that cumulative losses could surpass $50 million, with new assets still being moved into attacker-controlled wallets at regular intervals.

On the Solana blockchain, investigators noted that a portion of the stolen funds passed through a wallet known in the community as “PNUT Whale” before landing in another account now holding approximately $6.09 million worth of tokens.

More than $34 million in Ethereum alone was traced to two major wallets, alongside large amounts of Layer 2 (L2) tokens such as Optimism (OP), Arbitrum (ARB), and Mantle (MNT).

The stolen assets include a mix of SOL tokens, stablecoins like USDT and USDC, and high-risk liquid meme coins. While many of these can be exchanged on decentralized platforms without centralized oversight, all transactions remain visible on public blockchains – giving investigators a digital trail to follow.

Impact on the Market

The incident sent ripples through the broader cryptocurrency market, which was already experiencing heightened volatility. Bitcoin (BTC) dropped sharply from $124,000 to $117,700, while Ethereum slid to $4,440 and Solana declined to $187. Optimism (OP) saw one of the steepest losses as attackers dumped large quantities of stolen OP tokens in exchange for ETH.

BtcTurk processes approximately $300 million in trading volume per day, with around 75% of trades involving the Turkish lira (TRY). More than 70% of the platform’s trading pairs are in relatively low-liquidity tokens – a factor analysts say could have made certain assets easier to manipulate or offload during the heist.

BtcTurk’s Response

In a statement, BtcTurk confirmed that deposits and withdrawals have been temporarily suspended but reassured users that local currency transactions and cryptocurrency trading remain fully operational.

The exchange emphasized that only a “limited portion” of its assets were stored in hot wallets, with the majority held in cold storage – offline wallets designed to be less vulnerable to hacking attempts.

“Protecting our users’ funds is our highest priority,” BtcTurk said. “We are actively collaborating with leading blockchain security firms to trace the stolen funds, identify the attackers, and recover the assets where possible.”

However, the exchange did not provide a specific timeline for when deposit and withdrawal services would resume, leaving many customers uncertain about the short-term accessibility of their holdings.

Part of a Larger Trend in Crypto Attacks

The BtcTurk breach comes amid a surge of cryptocurrency-related security incidents since July. While many of these attacks have targeted decentralized finance (DeFi) protocols rather than centralized exchanges, the BtcTurk case serves as a stark reminder that even established platforms remain vulnerable.

Notable recent incidents include the $200 million Poly Network hack, the $70 million Curve Finance exploit, and a series of smaller but coordinated phishing attacks targeting crypto wallet users globally.

“Hackers are becoming increasingly sophisticated,” said cybersecurity analyst Cem Yildiz. “They’re now capable of launching multi-chain attacks that hit several blockchain networks simultaneously, making tracking and recovery far more complex.”

Challenges in Recovery

Recovering stolen cryptocurrency is notoriously difficult. While blockchain transactions are transparent, the pseudonymous nature of wallet addresses allows attackers to hide behind layers of digital identities.

Experts say the attackers may attempt to launder the stolen assets through a combination of decentralized exchanges, privacy coins like Monero (XMR), and crypto mixers designed to obscure transaction origins.

However, because large transactions are harder to conceal without triggering security alerts, law enforcement agencies and blockchain security firms often have opportunities to freeze stolen funds if they attempt to pass through centralized exchanges with strong compliance measures.

Regulatory and Industry Implications

The incident is likely to reignite discussions in Turkey about cryptocurrency regulation, investor protection, and exchange security standards. Turkey is one of the world’s most active crypto markets, with millions of citizens using digital assets to hedge against high inflation and currency devaluation.

Regulators have previously signaled intentions to introduce stricter rules for cryptocurrency exchanges, including mandatory reserve requirements, enhanced KYC (Know Your Customer) protocols, and real-time security auditing.

“This is a wake-up call for the entire industry,” said blockchain consultant Elif Kara. “Centralized exchanges must constantly update their security infrastructure. One breach can undermine years of trust-building with users.”

What’s Next for BtcTurk Users?

For now, BtcTurk customers are advised to remain patient and monitor official communications from the exchange. Analysts say that while recovery of all stolen funds is unlikely, partial recovery is possible if the attackers attempt to move assets through traceable channels.

Meanwhile, cybersecurity experts recommend that users diversify their holdings across multiple platforms and wallets, keeping long-term investments in cold storage rather than on exchanges.

Writer @Erlin

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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