Turkish Crypto Exchange BtcTurk Faces Cyber Attack, Wallets Compromised

BtcTurk Cyber Attack: User Assets Safe and Secure. On June 22, the prominent crypto exchange BtcTurk disclosed that it had been the target of a cyber attack. Hackers managed to gain unauthorized access to some of BtcTurk’s hot wallets, impacting crypto balances across ten different cryptocurrencies. However, BtcTurk assured its users that the losses from the attack are within manageable limits and will not affect user assets. Most funds are stored in cold wallets, which remain completely safe.

Immediate Response and Assurance

BtcTurk quickly responded to the breach by stating that the majority of their crypto asset holdings are in cold wallets, which were not compromised. They emphasized that their financial resilience is more than sufficient to cover the impacted amounts, ensuring that user assets are protected from any losses.

Additionally, BtcTurk has launched a thorough investigation into the incident and is working closely with relevant authorities. As a precaution, the exchange has temporarily suspended crypto deposits and withdrawals. They are diligently working to resolve the issue and restore full functionality to their platform.

Growing Crypto Adoption in Turkey

Turkey has seen a significant rise in crypto adoption in recent years, driven by soaring inflation and a falling Lira. The situation has become even more interesting with recent governmental changes to the country’s tax system. Turkish lawmakers are working to replenish national finances, which were severely depleted after last year’s devastating earthquakes. This has led many Turkish citizens to explore cryptocurrencies as tax-efficient investment alternatives.

Proposed Tax on Crypto Transactions

In response to the increasing interest in cryptocurrencies, the Turkish government has proposed a 0.03% tax on crypto transactions. This measure could generate approximately 3.7 billion Liras in annual revenue for the government. Despite this potential new tax, the demand for crypto in Turkey continues to grow.

Support from Retail Banking Institutions

Retail banking institutions in Turkey are also beginning to support digital asset transactions. Last week, Garanti BBVA Digital Assets, a subsidiary of Garanti BBVA Financial Technologies, launched crypto wallet services on its mobile platform. This new service will allow the bank’s customers to trade Bitcoin (BTC), Ethereum (ETH), and USD Coin (USDC) using the Garanti BBVA Crypto app. Initially, this service will be available on a limited basis as a beta platform.

Conclusion

Despite the recent cyber attack, BtcTurk has taken swift action to ensure user assets remain secure. The exchange’s financial resilience and the majority of its funds being stored in cold wallets have provided additional security. Meanwhile, the rising adoption of cryptocurrencies in Turkey, coupled with new governmental tax proposals and support from retail banks, indicates a strong and growing interest in digital assets in the country.

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