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BitMart to compensate victims after hackers steal $150 million worth of cryptocurrencies

BitMart has said deposit and withdrawal functions will 'gradually begin on December 7, 2021'

December 07, 2021 / 10:29 AM IST
Bitcoin | Representative image

Bitcoin | Representative image


Crypto exchange BitMart has said it will compensate victims of a mega security breach after hackers stole cryptocurrencies worth around $150 million.

The crypto exchange had completed initial security checks and identified affected assets, BitMart said in a statement on December 6, two days after the security breach.

"This security breach was mainly caused by a stolen private key that had two of our hot wallets compromised. Other assets with BitMart are safe and unharmed," it said.

According to BitMart, the affected ethereum hot wallet and Binance Smart Chain hot wallet carried a "small percentage" of assets on BitMart.

"BitMart will use our own 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," the crypto platform said.

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The company said that deposit and withdrawal functions would "gradually begin on December 7, 2021".

While BitMart pegged the losses at $150 million, blockchain data and security analytics company PeckShield, which first flagged the breach, estimates that hackers stole crypto worth $196 million -- $100 million on ethereum blockchain and another $96 million on Binance Chain.

Tagging BitMart CEO Sheldon Xia on Twitter, the security firm said it was a "pretty straightforward" case of "transfer-out, swap, and wash".

In a tweet on December 6, PeckShield said that security breach was tough and brutal. "We'd like to stand along with @BitMartExchange and provide necessary support/help in all possible ways!" it said.

Moneycontrol News
first published: Dec 7, 2021 10:28 am

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