DeFi Takes a Hit as Hackers Steal $8 Million in Assets from BitKeep Wallets

The hammer dropped again when we thought we could pick up the pieces and look toward a bright future. This time, the crypto community got hit during the holidays, losing about $8 million in assets. It is a bad day for investors who hold different cryptos in BitKeep wallets.

We have had crypto hacks in the past, but the trend keeps defying preventive measures. Despite the much-touted tight-knit security of the blockchain, users get drained of their cash. The sad event happened on December 26 as users looked at the crypto assets leaving their wallets.

So, what exactly happened?

How Hackers Stole $8 Million in Assets from Bitkeep Wallets

While we wait for more information about what happened, early reports from the official BitKeep Telegram group point to a hijacking. The team said that hackers may have taken over some APK installation packages and added malware. As a result, they gained access to users who downloaded and installed the files.

It’s been a hard day, and there are reports that the hacking may still be happening. The hackers chose an unofficial released version of the BitKeep multichain crypto wallet’s application to peddle the malware. By gaining access, they transferred crypto assets even when the users did not initiate any transactions.

The extent of the Bitkeep hack shows losses of about 4373 $BNB, 5.4M $USDT, 196K $DAI, and 1233.21 $ETH. A wallet address that hackers may have used may already have more than $5 million worth of crypto assets. As exploitation continued, it took PeckShield, a blockchain security and analytics firm, to peg the value at $8 million.

This hack is one of two that users have experienced with the BitKeep wallet. On October 17, the multichain wallet was hacked, and $1 million worth of BNB was taken out of it. The DeFi later released a redemption portal for users caught in the unfortunate web.

That event may have been a byte-sized one compared to what hit the platform a few hours ago. $8 million worth of digital assets has been stolen through hijacked APKs. Certainly, Bitkeep has much catching up to do and more redemption this time.

What to Do to Safeguard Your Crypto Assets

If you use BitKeep to store your digital assets, now may be the time to transfer them to another wallet. Even the wallet’s team has suggested that users move their funds to verified wallets on Google Play and the Apple Store. Of course, you shouldn’t transfer your funds to an unverified wallet at this critical time.

It is a small price to pay and must be done quickly. With the APK files out in the wind, it may be challenging to track them and shut them down immediately. Hence, the ultimate safety measures lie with the users.

Apart from moving your funds to a new wallet, you should create new wallet addresses for your transactions. It is prudent to suspect that hackers have compromised your previous addresses. Get your crypto assets as far away from BitKeep as possible.

You must do both if you’ve downloaded an APK file related to BitKeep in the last 24 hours. Just assume that you have installed the compromised application.

If you haven’t installed any BitKeep applications recently and the two options above seem like a tall order, here’s what you can do: Cease all transactions in and out of your wallet. Use other wallets to send and receive crypto until you can move your money out of BitKeep.   

Bitkeep’s Call for Assistance

While BitKeep and its security team work to contain the situation, they have made a few recommendations for help. Users can help the investigation by sending in relevant information through a Google form that the wallet gives them. That will help it determine the hack’s extent and take preventive measures.

The situation will undoubtedly come under control. However, keep your assets away from BitKeep until then. Do not install any unknown APKs on your mobile device in the meantime.

The storm in the crypto industry is taking on a new shape. Hacks have been reported in the industry, with this one being the latest. How much more can this fragile and highly volatile entity take?

We hope the situation ends quickly and safety is restored for wallet users. As for those who lost their assets during the hack, we will see how the company responds later.