Turkey’s largest cryptocurrency exchange, BtcTurk, has fallen victim to a cyber attack, resulting in unauthorized withdrawals from some of its hot wallets. The incident occurred on June 22, 2024, affecting the balances of ten cryptocurrencies stored in these hot wallets.

BtcTurk Assures Users of Financial Stability

BtcTurk has assured its users that the majority of assets stored in their cold wallets remain secure. Cold wallets are offline and considered safer than hot wallets, which are connected to the internet and vulnerable to hacking. The exchange stated that its financial strength is well above the amounts affected by this attack, and user assets will not be affected by these losses.

Binance Joins Investigation

Binance is actively assisting BtcTurk in the investigation. Binance CEO Richard Teng confirmed that over $5 million of the stolen funds have been frozen. Teng assured that Binance’s security teams are working tirelessly to protect the crypto ecosystem.

Turkey’s Crypto Market Experiences Surge

Turkey has seen a significant surge in cryptocurrency usage since 2020, driven by a decline in the value of the lira. This trend has made Turkey one of the largest crypto trading markets globally. The country’s crypto market has experienced significant incidents in recent years, including the sentencing of Thodex’s founder to over 11,000 years for defrauding investors and the halt of withdrawals at Swiss crypto exchange Lykke after an exploit.

Legislative Proposal to Mitigate Risks

Turkey has introduced a legislative proposal aimed at mitigating the risks associated with transacting with crypto assets within the country. This proposal, presented to parliament by ruling party chairman Abdullah Güler, encompasses various regulations concerning crypto assets and will be enforced by the Capital Markets Board (CMB). The bill sets forth crucial rules for crypto service providers and enhances the CMB’s oversight over them.

Hope for Recovery and Enhanced Security

The BtcTurk hack highlights the ongoing risks faced by crypto exchanges, despite significant security measures. With the involvement of global players like Binance, there is hope for recovery and enhanced security in the future.