BtcTurk Halts Crypto Withdrawals After $48M Hot Wallet Hack
On August 14, 2025, BtcTurk detected a security breach in its hot wallet, marking the second BtcTurk hot wallet hack within a year. In the latest hot wallet hack, hackers moved an estimated $48M across Ethereum (ETH), Avalanche (AVAX), Arbitrum (ARB), Optimism (OP), Mantle (MNT), Base and Polygon (MATIC) networks to two Ethereum and one Solana (SOL) address. Blockchain security firm Cyvers flagged the abnormal transfers, and some stolen tokens were converted to ETH. Lookonchain estimates the loss at $23M, while CertiK places it at $50M. BtcTurk has frozen crypto deposits and withdrawals but assured users that cold wallet reserves, trading and fiat operations remain unaffected. Authorities have been notified, and enhanced security measures are in progress.
Bearish
The BtcTurk hot wallet hack is likely to generate short-term selling pressure on the affected tokens, especially ETH, as some stolen assets have already been converted and may hit the market. Confidence in crypto exchange security may weaken, prompting traders to reduce risk exposure and withdraw assets, which can drive prices down. In the longer term, increased focus on security measures and cold wallet practices could restore trust, but immediate uncertainty may persist. Overall, the breach’s direct impact is bearish, given potential sell-offs and heightened caution among market participants.