BitMart withdrawals frozen after $200m hacking loss

By Raffaele Redi

Withdrawal functions could be restored on 7 December

A laptop keyboard with a set of handcuffs and a judge’s gavel                                 
In the aftermath of the attack CEO Sheldon Xia said users will be entitled to compensation – Photo: Shutterstock

Cryptocurrency trading platform BitMart has identified a large-scale security breach related to one of its ETH hot wallets and one of its BSC hot wallets with the hackers able to withdraw assets valued at over $200m (£150m).

The company said that after an internal investigation on the attack – discovered on 5 December – the breach was allegedly caused by a stolen private key that had two hot wallets compromised, with CEO Sheldon Xia emphasising that “other assets with BitMart are safe and unharmed”.

“The affected ETH hot wallet and BSC hot wallet carries a small percentage of assets on BitMart and all of our other wallets are secure and unharmed,” he said.

The platform temporarily suspended withdrawals in the aftermath of the attack, announcing that withdrawal functions could be restored on 7 December.

BitMart response

In response to the incident the company said it completed initial security checks and identified affected assets to identify the cause of the attack. CEO Xia said that users will be entitled to compensation, without specifying the exact amount.

“BitMart will use our funding to cover the incident and compensate affected users. We are also talking to multiple project teams to confirm the most reasonable solutions such as token swaps. No user assets will be harmed,” he said.

“We are now doing our best to retrieve security set-ups and our operation. We need time to make proper arrangements and your kind understanding during this period will be highly appreciated.

“In terms of asset deposit and withdrawals, we are confident that deposit and withdrawal functions will gradually begin on December 7, 2021. The detailed timelines will be announced very soon. Thank you,” Xia added. 

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
iPhone Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image