Turkish Crypto Exchange BtcTurk Faces Cyber Attack, Wallets Compromised

Just hours before on June 22, prominent crypto exchange BtcTurk disclosed a cyber attack that resulted in unauthorized access to some of its hot wallets. As per the preliminary report, the hackers managed to get their hands on some crypto balances across 10 different cryptocurrencies stored in the hot wallets.

BtcTurk Cyber Attack – Cold Wallets SAFU

While the hackers managed to gain access to the hot wallets, BtcTurk reported that a majority of their crypto asset holdings remained in the cold wallets, which remain completely secure.

Furthermore, BtcTurk has assured users that its financial resilience exceeds the impacted amounts. Thus, the exchange has ensured that the user assets are safeguarded from losses. Additionally, BtcTurk has initiated a thorough investigation into the incident while engaging with relevant authorities.

As a precautionary measure, BtcTurk has also temporarily suspended crypto deposits and withdrawals. The exchange stated that its team is working diligently to resolve the issue and thus restore full functionality to its platform for all its users.

Turkey’s Rise In Crypto Adoption

Soaring inflation and falling Lira have been the key reasons for the rising crypto adoption in Turkey over the past few years. However, things got more exciting recently after the Turkish government decided to overhaul the country’s tax system.

Turkish lawmakers are working to replenish the national finances which depleted considerably after last year’s destructive earthquakes. These measures to bolster their revenue streams have pushed Turkish citizens to explore cryptocurrencies as tax-efficient investment alternatives.

However, amid the rising crypto adoption in Turkey, the government has proposed implementing a 0.03% tax on crypto transactions. This measure could likely generate approximately 3.7 billion Liras in annual revenue for the government.

Seeing the rising demand for crypto, retail banking institutions in Turkey are also willing to support digital assets transactions. Last week, Garanti BBVA Digital Assets, a subsidiary of Garanti BBVA Financial Technologies, launched crypto wallet services on its mobile platform.

As a result, the bank’s customers will now be able to trade Bitcoin (BTC), Ethereum (ETH), and USD Coin (USDC) using the Garanti BBVA Crypto app. Initially, the service will provide limited user access since it is available as a beta platform.