BitMart Hit by Security Breach Linked to Mercado Bitcoin Hack

Founder Sheldon Xia acknowledged the intrusion on X, characterizing the stolen amount as relatively small while confirming that security measures were tightened immediately following the detection. Blockchain analytics firm Bitquery identified approximately $391,000 drained from wallets associated with the exchange, with suspicious transfers appearing on-chain nearly an hour before the larger Mercado Bitcoin attack unfolded.

Xia attributed the vulnerability to an ongoing operational crisis. Following the decision to halt trading in August and the appointment of financial advisers, the exchange has been operating with a skeletal core team. The founder cited a hostile internal environment, claiming that former personnel and disgruntled users have engaged in doxxing and intimidation, which has hindered efforts to maintain adequate technical staffing.

This latest breach compounds a difficult recovery process for BitMart, which has been attempting to address financial instability stemming from a massive $319.5 million hack in December 2021. As management works toward a restructuring proposal expected for court review by early 2027, the exchange remains under intense scrutiny. Meanwhile, Mercado Bitcoin has reported that industry partners have successfully frozen approximately $11 million of the assets stolen from its own systems during the same window of coordinated attacks.