Bitbns questioned over possible cover-up of $7.5M hack

On-chain sleuth ZachXBT is alleging that Indian exchange Bitbns was hacked for $7.5 million last month, but claims the exchange disguised it as “system maintenance.”

Contacted BeInCrypto Gaurav Dahake, Chief Executive Officer (CEO) of Bitbns regarding the allegations. Dahake mentioned that he reached out to on-chain sleuths and would clarify further in an Ask Me Anything (AMA) session.

Bitbns hacker used Tornado Cash

When Bitbns shut down for “system maintenance”, its hot wallet experienced large withdrawals at the same time. A large portion of the withdrawals were from the wallet, “0x4960,” to “0x24f3.” Customer support from a Twitter user do This proves that 0x4960 was a Bitbns hot wallet from the exchange.

Apparently, 0x24f3 sent funds to wallet 0x4895 and used Tornado Cash to withdraw the funds. Funds have been withdrawn from 0x4895 in batches of 100 Ethereum (ETH) for the past year. The latest transaction was done on February 28, 2023 for 3 ETH.

BitBNS hacker activity
Source: etherscan

It is worth noting that BNS upgraded the contract to v3 about a week after the hack. the community has questioned Reason for upgrade.

CEO assures

Finally, Dahake confirmed in an AMA that his wallet was compromised. But, this coincides with the maintenance of the system and the upgrade to V3. He added that the company wanted to share the report of the hack after the investigation was complete.

The CEO of the Indian exchange also clarified that users can withdraw money even after the incident. But on the contrary, some users have shared screenshots of the INR withdrawal window of Bitbns. It mentions that the withdrawal will be processed in “more than 30-60 banking days”.

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BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.

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