HOYA BIT Confirms Cyberattack After $1M Hot Wallet Drain, Assures User Funds Are Secure

Taiwan’s cryptocurrency landscape has once again been shaken by news of a potential security breach. Market observers recently flagged highly unusual activity emanating from HOYA BIT’s wallet addresses. Alarming “cliff-like plunges” in the exchange’s hot wallet balance, totaling approximately $1 million USD across 147 rapid transactions, immediately ignited community speculation regarding a potential cyberattack.

Analysts pointed out the distinctive pattern of these withdrawals. Unlike typical, dispersed user withdrawals, HOYA BIT’s hot wallet was “completely drained” through a series of “round-figure, large-sum, continuous transfers.” This highly synchronized behavior strongly suggested an automated script operation, raising immediate red flags about the exchange’s security posture among external observers.

Responding to the mounting speculation, HOYA BIT officially issued an announcement in the early hours of January 23rd, confirming that abnormal withdrawal activity was indeed detected in some of its wallet assets during routine operations on January 22nd. The exchange stated that it promptly activated its emergency response protocols.

A crucial point emphasized by HOYA BIT is its robust security architecture, which rigorously separates cold and hot wallets. The exchange clarified that the cyberattack exclusively targeted its proprietary assets held within the hot wallet. Critically, all user funds, which are securely stored in offline cold wallets and vaults, remain entirely unaffected and safe from compromise.

To proactively mitigate any further risk and sever the attacker’s path, HOYA BIT explained that it temporarily suspended all services on the morning of January 22nd. This decisive action was taken to prevent the transfer of funds from secure cold storage into the potentially compromised hot wallet, thereby safeguarding user assets. During this suspension, the platform launched a comprehensive audit and security hardening initiative for its hot wallet infrastructure. This extensive review covered critical areas including API Keys, signature permissions, and backend management privileges. HOYA BIT confirmed that all necessary security enhancements have now been successfully completed, and platform services have since been fully restored.

Following the incident, HOYA BIT immediately engaged third-party professional forensic experts and initiated on-chain tracking operations to trace the illicit transfers. The exchange also affirmed its commitment to maintaining close cooperation and communication with relevant partners and law enforcement agencies throughout the ongoing investigation.

HOYA BIT concluded by reiterating its unwavering commitment to user security, assuring its community that the incident has not impacted any user assets or personal data. The exchange affirmed its dedication to meticulously handling all subsequent matters according to established mechanisms, ensuring the continued safety and integrity of user transactions and digital assets on its platform.