ZB.Com Latest Victim of a Hot Wallet Hack; Here’s What We Know

Updated by Ryan James
In Brief
  • Crypto exchange ZB.com has reportedly lost $4.8 million from its hot wallet in a probable attack.
  • Earlier, the Switzerland-registered exchange had suspended services stating technical shortfalls.
  • Etherscan identified the wallet of the bad actor as seems to have liquidated around $3.6M.
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ZB.com, a cryptocurrency exchange that stopped accepting deposit and withdrawal requests on August 2, has had roughly $4.8 million taken from its hot wallet in a probable attack.

Stolen funds liquidated on DEXs

Cyber security company PeckShield and researcher chuchuprotocol.eth confirmed the incident on Wednesday after the tokens were reportedly sold on decentralized exchanges. Etherscan identified the wallets of the bad actor as ‘ZBExchange Hacker 1’ and ‘ZBExchange Hacker 2’.

At the time of writing, the first wallet had a balance of over $1 million, while the second wallet was liquidated to bring in $3.6 million from selling 2,224.9 ETH at $1,656.83 per ETH token. 

Notably, the Switzerland-registered exchange had suspended its user services earlier stating the reason as “sudden failure of some core applications” which required time to troubleshoot. It had also cautioned users to not deposit any digital currency before the recovery.

A week of crypto hacks…

At press time, the exchange is yet to acknowledge the drainage from its hot wallet. However, the news also follows a multi-million dollar hack on the Solana network on Wednesday, which emptied almost $6 million from user wallets. At the same time, the $200 heist at Nomad has become the seventh major bridge hack of all time, according to security firm elliptic, after critical attacks on Wormhole, Ronin, and Horizon this year.

That said, after these hacking incidents one after the other, many crypto exchanges have come forward to promote ‘cold wallets.

With regard to the Solana incident, Prashant Kumar, Founder, WeTrade told Moneycontrol, “The initial signals point to compromised keys which are evident by the digital footprints which are apparently signed by the respective owners. One of the key things to learn through this is to ensure 100% privacy of the private keys and some users have started to move their coins to hardware wallets.”

Lately, notorious crypto players have become frequent in the digital space. This week, Imran Khan, former Prime Minister of Pakistan and the leader of the country’s Tehreek-e-Insaf (PTI) party also had his Instagram account momentarily hacked.

The incident came to light when the hacker reportedly tweeted a cryptocurrency promotion from his Instagram account along with phony links before it was recovered by the parent company Meta. 

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