Turkey’s biggest and highly functional cryptocurrency exchange, BtcTurk, was hacked, as reported by the exchange authorities. The authorities informed that a number of hot wallets registered with the exchange were hacked and some amount of cryptocurrencies were stolen.
The exchange authorities said that the major chunk of their investments are safe as they are locked away in cold wallets. They said that only a negligible amount was stolen and it will not affect the exchange’s asset base in any way.
The authorities have reassured that the financial stability of the exchange will not be disturbed by this hacking attempt.
A detailed investigation into the vulnerability of the exchange infrastructure that paved the way for external attack has been initiated by the authorities and stakeholders will get a clear picture of the depth of the attack after these investigations.
About $5.3 million worth of cryptocurrencies were frozen after the attack by Binance, which is on a mission to assist BtcTurk in repairing the damage caused by the cyber attack.
The crypto transactions on the exchanges have been temporarily suspended; the operations of the exchange will be restored once the security measures are rechecked and tightened by the cyber security team.
The attack on BtcTurk, though minor in proportion, has become a hot topic of discussion. It has once again resurfaced the possible fallibility of the digital transactions network.
This has rekindled the commonplace skepticism regarding the probability of cyber attacks in the decentralized finance marketplace.
Insights into the Turkish Cryptocurrency Market
Recent reports suggest that the Turkish cryptocurrency market is large enough that any changes in the native market will have global implications.
Turkey is the third largest cryptocurrency market in the world in terms of the number of crypto holders. 19.3% of the Turkish population owns one crypto coin or the other.
Turkey is only behind UAE and Singapore, which are the first and second largest communities of crypto owners at 25.3% and 24.4% of the total population holding cryptocurrencies, respectively.
The revenue from the cryptocurrency market is expected to rise to $139.2 million in 2024. The average revenue per user is $10.7. The compounded annual growth rate (CAGR) of the Turkish market is estimated to be 10.44% and will reach $207.1 million by 2028.
The Turkish authorities are planning to impose regulations and taxes on cryptocurrency, which is viewed as an important step in integrating the digital economy into the country’s mainstream finance sector.
Several macroeconomic factors as well as the keenness of the younger population of the country to adopt technology and innovation into the financial marketplace are the major reasons for the growth of cryptocurrencies in Turkey.
Turkey’s resolve to adopt the new technological developments in the fields of digital money, artificial intelligence, machine learning, big data, and blockchain technology is outlined in the country’s Medium Term Program (MTP) for 2024-2026.
The program is designed in tune with the innovations happening in other parts of the world to upgrade the Turkish market, attract foreign investments, and enhance transparency and monitoring of the market.
How to Safeguard Your Digital Money From Cyber Attacks?
In the wake of the cyber attacks on BtcTurk, the prominent cryptocurrency exchange in Turkey, it is important to note some of the measures that should be taken to prevent cyber attacks on your digital currencies.
First of all, do not store your cryptocurrencies and other digital assets on any hot wallets or on the exchange account itself. These storage spaces are connected to the internet and therefore, the smart contracts of your crypto coins would be visible to all.
This will increase the chance of theft and hacking attempts. The smart contracts should be stored in cold wallets or hardware wallets to prevent infiltration by any foreign actors.
You should be wary of the authenticity of the addresses with which you conduct transactions. Fraudsters can forge the details of transactions and pose themselves as valid actors while making hacking attempts.
Also, Read: The Rise Of Crypto Scams: How To Spot And Avoid Them?
The Bottom Line
The attempt at hacking BtcTurks, the prominent cryptocurrency exchange in Turkey, is a reminder to make responsible digital transactions and implement large-scale measures to oversee the safety of digital transactions.
