BitMart exchange became the latest victim of a security breach in which hackers stole funds worth $150 Million. According to the chief executive of the company, BitMart Hack victims will receive compensation for their stolen cryptocurrencies.
BitMart provides real-time trading services to its users. Last week the security of the platform was compromised after the private key of two of its “hot wallets” was stolen. A blockchain security firm Pechchield Inc. revealed the incident before the company’s own confirmation. According to PeckShield, the loss stands at $200 million more than what BitMart’s CEO Sheldon Xia confirmed.
Mr. Xia took to Twitter to talk about the compensation. He also said that the trading on BitMart will resume from Tuesday.
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 Xia (@sheldonbitmart) December 6, 2021
BitMart has announced a security upgrade on Tuesday, December 07th. Users are advised to log out and re-login for safety purposes. Moreover, “BitMart will be replacing all deposit addresses including BTC, ETH, SOL, and all other tokens.”
Security breaches are common in the crypto market. In August this year, PolyNetwork was hacked and the hackers managed to steal $600 million. It was considered the largest hack ever in the DeFi ecosystem.
The news of the BitMart hack came after the crypto market dumped significantly over the weekend. The parent cryptocurrency Bitcoin was trading at 42,296 as a result of the plunge in prices. However, the market has recovered, and now BTC is trading above $50K.