BitMart faces heavy criticism as hackers breached their systems and made away with close to $200 million. Hackers stole BabyDoge, SafeMoon, Saitama, Kishu, Dogelon Mars, Shiba Inu, CRO, Floki, SAND among others. The security breach made thousands of users portfolio turn to zero.
Investigations are currently underway on how the hackers managed to breach their networks and who could it possibly be. However, the identity of the scamsters has not come to light despite the thieves selling off majority of the cryptos.
However, amidst all the hullabaloo, it is the user who has lost money and BitMart is solely responsible for their losses. The founder and CEO of BitMart Sheldon Xia confirmed that the exchange firm will compensate the losses of the users from their own funds.
“In response to this incident, BitMart has completed initial security checks and identified affected assets. This security breach was mainly caused by a stolen private key that had two of our hot wallets compromised. Other assets with BitMart are safe and unharmed,” tweeted Xia.
“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.”
“We are now doing our best to retrieve security set-ups and our operation. Need time to make proper arrangements and your kind understanding during this period will be highly appreciated,” said Xia in a series of tweets.
BitMart Deposits and Withdrawals Will Resume on December 7
Moreover, after the security breach, BitMart paused the deposits and withdrawal functions. In addition to that, Xia confirmed that deposits and withdrawals will resume only after December 7, 2021. Xia apologized for the inconvenience investors had to face and will send out a detailed timeline soon.
“In terms of asset deposit and withdrawals, we are confident that deposit and withdrawal functions will gradually begin in December 7, 2021.”
Nonetheless, Xia confirmed that the team is doing all the necessary safety checks before making the feature go live. “We are now doing our best to retrieve security set-ups and our operation.”