Brazil’s Largest Crypto Exchange Assures Users They Won’t Bear Hack Losses
Mercado Bitcoin, one of Brazil’s largest cryptocurrency exchanges, has stated that its users will not be held responsible for losses incurred during a significant security breach that occurred on Monday. The exchange, which reportedly lost tens of millions of dollars, has declared that the financial impact will be absorbed by the company, not its customers.
In the cryptocurrency world, exchanges function similarly to banks, holding users’ digital assets. When such platforms are compromised, customers often face uncertainty regarding the recovery of their funds.
Mercado Bitcoin detected the security incident early on November 2 and promptly halted all deposits and withdrawals. “We identified and quickly contained a security incident in one of our systems early this morning,” the exchange announced in a statement on X, formerly Twitter. “As a preventive protection measure, deposits and withdrawals are temporarily suspended.”
The company has confirmed that no customer funds were lost and no user data was compromised. However, the exact method by which attackers gained access remains undisclosed.
Estimates of the total amount stolen vary. Security firm Hypernative reported over $40 million in suspicious transfers across at least 10 different blockchains, including Bitcoin, Ethereum, Solana, and Tron.
Mercado Bitcoin’s own assessment of the loss is slightly lower. In an update on X, the exchange stated, “Right now the value of the assets involved is about $38 million.” The company also noted that through swift action with the crypto community and strategic partners, including Tether, Circle, Paxos, BRL1, and Chainalysis, they have already managed to block $11 million of the stolen funds.
Other blockchain analytics firms have placed the figure higher. Arkham traced at least $46 million, while Chainalysis reported approximately $49 million, with nearly $10 million of that amount frozen. It is unclear if Mercado Bitcoin’s $38 million figure includes the frozen assets.
Paolo Ardoino, CEO of Tether, the issuer of the USDT stablecoin, confirmed on X that Tether had frozen over $4.5 million in USDT linked to the incident.
A freeze on cryptocurrency tokens prevents them from being moved but does not guarantee their return to the rightful owner. This is why Mercado Bitcoin’s commitment to covering the losses is particularly significant.
This incident follows a major hack on October 29, where hackers stole over $6 billion from Binance, the world’s largest cryptocurrency exchange. The FBI attributed that attack to North Korea’s TraderTraitor group. Mercado Bitcoin has not indicated any connection between its breach and the Binance hack.
Binance made a similar pledge to its users. CEO Richard Teng stated on X that Binance would “absorb the financial impact of the stolen funds, not our users,” and that approximately 95% of the affected assets had already been replenished.
External verification of such guarantees is challenging, as exchanges are not obligated to disclose their financial records to customers. The credibility of a promise to cover losses ultimately rests on the financial stability of the exchange itself.
Currently, Mercado Bitcoin’s deposit and withdrawal services remain suspended with no set date for resumption. The exchange has stated it will provide updates on X and will reinstate services once full security has been restored.
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