Turkish crypto exchange BtcTurk has faced a cyber attack, compromising some of its hot wallets and resulting in unauthorized access to crypto balances across 10 digital assets. Despite the breach, BtcTurk has assured users that most of its funds are in cold wallets, which remain completely safe at the moment.

Cyber Attack Details

The attack occurred just hours before on June 22, with hackers gaining access to some of BtcTurk's hot wallets. The exchange reported that the losses from the attack are well within manageable limits and will not affect user assets.

Cold Wallets SAFU

While the hackers managed to gain access to the hot wallets, BtcTurk reported that a majority of their crypto asset holdings remained in the cold wallets, which remain completely secure. This means that most of the funds are safe and unaffected by the attack.

Investigation and Measures

BtcTurk has initiated a thorough investigation into the incident while engaging with relevant authorities. As a precautionary measure, the exchange has temporarily suspended crypto deposits and withdrawals. The team is working diligently to resolve the issue and restore full functionality to its platform for all users.

Turkish Crypto Adoption

Turkey's rise in crypto adoption has been driven by soaring inflation and falling Lira. The government's decision to overhaul the country's tax system has also pushed Turkish citizens to explore cryptocurrencies as tax-efficient investment alternatives. However, the government has proposed implementing a 0.03% tax on crypto transactions, which could generate approximately 3.7 billion Liras in annual revenue.

Retail Banking Support

Retail banking institutions in Turkey are also willing to support digital assets transactions. Garanti BBVA Digital Assets, a subsidiary of Garanti BBVA Financial Technologies, has launched crypto wallet services on its mobile platform. The service will initially provide limited user access since it is available as a beta platform.

Conclusion

The cyber attack on BtcTurk highlights the importance of robust security measures in the crypto space. Despite the breach, BtcTurk has ensured that user assets are safeguarded from losses. The exchange's financial resilience exceeds the impacted amounts, and the team is working to resolve the issue and restore full functionality to its platform.