Cryptoupdated 59m ago2 min read
BitMart Confirms $391K Hack, Links Attackers To Mercado Bitcoin Breach
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BitMart confirms November 2 hack, about $391,000 stolen. Blockchain tracing links transfers to wallet tied to Mercado Bitcoin.
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BitMart hack, possible link
BitMart confirmed a security breach on November 2 and founder Sheldon Xia said the preliminary investigation suggests the attackers may be linked to the group behind the Mercado Bitcoin hack. Bitquery traced suspicious transfers from wallets mostly associated with BitMart and estimated that approximately $391,000 had been drained beginning around 53 minutes before the larger Mercado Bitcoin exploit. Xia acknowledged on X, “Yes, we got hacked yesterday too,” while adding that the amount involved was small and that the company quickly investigated and strengthened its security measures.
BitMart’s restructuring efforts continued as the exchange worked through unresolved customer withdrawals and financial difficulties after it decided to halt trading in August. Cointelegraph reported that BitMart’s founder Sheldon Xia said the security team was “severely understaffed” after the new hack.
Staffing strain and accusations
Sheldon Xia said BitMart’s security difficulties followed staff departures after restructuring and disputes involving former personnel, while he described threats against employees as part of the problem. Xia said, “It took considerable effort and individual conversations to persuade some key technical staff to remain and maintain our core systems,” as he described the exchange’s effort to keep its core systems running. Xia also accused Elly, BitMart’s former head of marketing operations, of participating in retaliatory actions against the company, and he said doxxing and threats from users discouraged technical personnel from staying.
Protos reported that BitMart was hacked for $391,000 this week as it struggled to retain its “severely understaffed” security team. Cryptopolitan said Xia confirmed the hack on November 2 and pointed to the Mercado Bitcoin exploit, describing the stolen amount as relatively small compared to several major incidents over the past few months.
Recovery plans and wider fallout
BitMart’s restructuring proposal outlined three potential recovery options for users, including liquid asset distributions and recovery-linked tokens, as the exchange planned to seek court approval in December or January. The exchange said it expected to adjust its proposal during November before pursuing court applications in December 2026 or January 2027, while it continued to resolve access to funds. BitMart attributed part of its financial trouble to a December 2021 security breach that depleted approximately $319.5 million in digital asset reserves, including $164.1 million in Ethereum, $96.5 million in BNB and $51.5 million in Bitcoin.
Mercado Bitcoin said the November 2 breach affected roughly $38 million in assets, of which about $11 million was frozen with help from industry partners, and it also said customers would not bear the losses. Cointelegraph reported that a crypto crime-fighting alliance formed by Tron, Tether and TRM Labs dissolved amid a wave of major industry hacks, after the T3 Financial Crime Unit struggled with slow responses and poor coordination.