Brazil’s largest crypto exchange, Mercado Bitcoin, is preparing to reopen customer account access starting Monday following a hack that resulted in over $46 million in losses. Exchange management affirmed its full commitment to reimburse all customer asset losses using the company’s internal cash reserves. This decision comes alongside the start of system recovery efforts after unauthorized transfers breached the platform.
Balance Access Restored, Withdrawals Remain Suspended
Account recovery will not return to normal immediately. In the first phase, customers will only be permitted to log into the website to check account balances, transaction statements, crypto holdings, and investment portfolios. Outbound transaction features remain disabled. The exchange has suspended withdrawals, transfers, and trading activities until all independent security testing is completed.
The breach stemmed from a series of unauthorized transfers that drained funds from the exchange’s hot wallets and customer deposit addresses via standard transfer mechanisms. To replace the missing coins, Mercado Bitcoin’s trading desk is now preparing buybacks of the stolen crypto assets. The buyback operations are planned across both domestic and international markets.
Internal Cash Reserves and $15 Million Frozen
Despite recently losing tens of millions of dollars, management stated that the company’s liquidity position remains secure. Exchange operations are supported by internal cash reserves and a fresh $20 million capital injection from stablecoin issuer Tether earmarked for business expansion.
Efforts to secure the stolen assets have also moved swiftly off-platform. Through direct coordination with crypto industry partners and stablecoin issuers, Mercado Bitcoin froze more than $15 million in stolen funds before the perpetrators could cash them out further.
Trace of 7,988 ETH on Uniswap and Links to BitMart
On-chain data reveals where the rest of the funds were moved. Blockchain analytics firm Lookonchain noted that the hacker immediately sold various looted altcoins on the decentralized exchange Uniswap. The dumped tokens included PEPE, AAVE, UNI, ONDO, and ENA, which were entirely swapped for 7,988 ETH worth approximately $18.19 million.
The attacker’s wallet trail also connects to another incident. Analytics findings from Bitquery indicate that the wallet used to breach Mercado Bitcoin has a history of suspicious transactions totaling $391,000 originating from crypto exchange BitMart.
For customers in Brazil, the reopening of website access on Monday provides at least some clarity regarding the balance figures in their wallets. However, until security audits are completed and withdrawals are re-enabled, the promise to cover losses from exchange reserves remains the most crucial test of trust between customers and the platform.
Reported via Cointelegraph.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
