BitBNS, a cryptocurrency exchange in India, faced allegations of covering up a $7.5 million hack under the guise of system maintenance. However, Gaurav Dahake, the founder of BitBNS, denied the allegations and said that some of the exchange’s funds were compromised on February 1, 2022, but it was not an abnormal scenario. He claimed that similar incidents had occurred on other big exchanges, such as Binance and KuKoin.
The Incident
According to Dahake, the exchange experienced irregular activities on the platform before the incident. As a result, they decided to take the exchange offline for a few minutes to analyze the issue. During the analysis, they found that certain token prices had a difference in buying and selling prices, and some users were trying to withdraw funds. Upon further investigation, they discovered that funds from different tokens were converted into Ethereum and transferred to different addresses from a specific address.
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Denial of Allegations
Dahake claimed that the incident was not unusual and had happened to multiple exchanges, including Binance and KuKoin. He further stated that when a security issue arises, exchanges try to fix the checks and balances in place.
Dahake claimed that BitBNS is the only exchange in India that allows crypto withdrawals. Since February 2022, BitBNS has experienced an unusually high volume of withdrawals. Despite the challenges, the exchange has survived TDS and taxes on virtual digital assets, the Luna crash, and the collapse of FTX.
BitBNS faced allegations of covering up a $7.5 million hack under the guise of system maintenance. However, the founder of BitBNS, Gaurav Dahake, denied the allegations and claimed that the incident was not unusual and had happened to multiple exchanges. Despite the challenges, BitBNS has survived and worked seamlessly.
