Kaamel Tech to Investigate XLink’s $10M Breach

On May 20, Bitcoin bridge XLink revealed a new collaboration with Kaamel Technology, as part of its initial major effort to address a recent security incident. In an official announcement, XLink stated that they have sped up their collaborations with Ancilia and Cobo to enhance security measures on the Bitcoin (BTC) bridge platform, alongside this new partnership.

XLink is determined to take strong steps to bolster its platform’s security. Their first significant measure is engaging Kaamel Technology for Incident Response. This partnership with the cybersecurity firm is intended to conduct a thorough investigation into “the root cause” of the May 15 breach, which affected nearly $10 million in user funds. Kaamel Technology will perform a detailed analysis and introduce measures to “eliminate vulnerabilities and prevent future breaches.”

In addition to its partnership with Kaamel Technology, XLink is fast-tracking an alliance with Ancilia Inc. This collaboration aims to upgrade “real-time on-chain monitoring infrastructure.” Ancilia had notified XLink about the recent attack, helping the bridge provider to take appropriate mitigation actions before further losses occurred.

Further security measures are being carried out in conjunction with Cobo, XLink’s BTC custodian. XLink mentioned that Cobo’s robust setup, which secured the reserve asset of aBTC, is being enhanced to accelerate the migration of their web3 key management to Cobo’s MPC infrastructure. XLink is committed to ensuring their platform’s security through these and other partnerships.

XLink elaborated that their strategy includes forming additional future partnerships with “Cobo, Ancilia, and Kaamel Technology” to strengthen the platform’s security. This coordinated effort follows a $10 million hack that involved compromising the Ethereum and BNB Smart Chain (BSC) endpoints. The attacker withdrew approximately $4.3 million by obtaining private keys through a phishing scheme. A white hat hacker soon intercepted and recovered the stolen assets.

In a related incident on May 15, Bitcoin layer-2 developer Alex Labs, the creator of the XLink bridge, was also targeted. During this breach, around $13.7 million in Stacks (STX) tokens were siphoned off due to compromised private keys.

XLink’s response to these breaches underscores the need for robust cybersecurity measures and strategic partnerships. By teaming up with leading cybersecurity firms, they are taking proactive steps to mitigate risks and protect user funds. This multi-faceted approach demonstrates their commitment to maintaining the integrity and security of their platform.

As XLink continues to navigate the complexities of blockchain security, their ongoing and planned initiatives will be crucial in safeguarding their systems against future threats. This effort includes leveraging advanced technologies and collaborating with industry experts, underscoring their dedication to user safety and trust.