BtcTurk Stops Withdrawals Amid Reports of Security Breach
Turkish cryptocurrency exchange BtcTurk has suspended digital asset deposits and withdrawals following reports of a significant security incident. The move comes after cybersecurity organizations detected suspicious activity involving the transfer of millions of dollars in crypto assets.
Unusual Activity Detected
On Thursday, cybersecurity firm Cyvers reported that it observed over $48 million in digital assets�primarily Ether�being transferred through irregular means. The analysis highlighted that the activity spanned several networks, including Ethereum (ETH), Avalanche (AVAX), Arbitrum (ARB), Base, Optimism (OP), Mantle, and Polygon (MATIC). According to Cyvers, the operator behind the breach quickly moved the assets between two addresses and began making swaps between tokens.
BtcTurk Takes Precautionary Measures
Following these alerts, BtcTurk halted all cryptocurrency deposits and withdrawals, citing a "technical issue" related to its hot wallets. In an official statement, the exchange clarified that trading and transfers of the local currency remain functional. It further noted that the vast majority of exchange assets are held in cold storage, which was not affected by the incident. The company reassured users that their funds are safe and that authorities have been notified as part of an ongoing investigation.
Loss Estimates and Continuing Investigation
Reports on the scale of losses remained inconsistent at the time of writing. While Cyvers estimated the breach at $48 million, Lookonchain put the figure at more than $23 million. Blockchain security company CertiK suggested total losses could reach at least $50 million. Lookonchain also found that the attacker had started converting stolen tokens into Ether. CertiK stated that the funds have been distributed to three key wallets, including two on Ethereum and one on Solana, with swaps ongoing at the time of publishing.
Historical Context and Leadership Changes
This incident follows a similar breach a year earlier in June 2024, when BtcTurk reported unauthorized withdrawals resulting in around $55 million in losses. That case also involved significant cooperation with international exchanges.
Recent changes at BtcTurk's leadership may add further attention to this event. In July 2024, long-serving CEO �zg�r G�neri stepped down as the exchange prepared for overseas expansion. Founder Kerem Tibuk assumed the role of acting CEO while G�neri remained on the board.
Next Steps
BtcTurk's investigation into the suspected hack is ongoing. The company has pledged to provide updates as more information becomes available. Crypto industry observers are closely monitoring the situation for developments related to user asset safety and platform security.
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