BitMart Resumes Withdrawals and Promises Compensation for $200 Million Hack

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Cryptocurrency exchange BitMart recently suffered a whopping $200 million hack which left many of the exchange customers in worry. To address the issue the CEO of the exchange, Sheldon Xia took on Twitter and promised that no user assets will be harmed. He vowed that the exchange will use its own funding to cover the incident and compensate affected users.

2/4 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. No user assets will be harmed.
— Sheldon (@sheldonbitmart) December 6, 2021

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The deposits and withdrawal functions were suspended on BitMart till Tuesday and the exchange is functional once again. BitMart recently closed a Series B funding round that valued the exchange at 300 million dollars. Now, the exchange is promising to cover customer losses of more than 150 million dollars.

Security is still a major concern in the crypto space as BitMart is not the first victim to suffer a hack like this. Recently a decentralized finance platform Badger Dao also suffered a hack which resulted in Celsius Network (cryptocurrency lending platform) losing significant funds. Similarly, In August we saw Poly Network losing around $600 million in a hacking incident. Even the safest crypto exchanges out there have dealt with these challenges over time.

BitMart’s hack took place when the crypto market plunged on the weekend and Bitcoin dropped more than 20%. The hack was first reported by PeckSheild Inc., a blockchain security firm. The exchange later confirmed the hacking news and stated that the incident happened because of a stolen private key. It was due to that stolen key that BitMart lost two of its hot wallets. These are online wallets as they are connected to the internet all the time.

The exchange is now slowly opening withdrawals for different cryptocurrencies as the users can already withdraw Bitcoin, Ether, and Solana. BitMart is considered one of the largest crypto exchanges in the world and is trusted by many users across the globe.

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