TLDR
- BitMart founder Sheldon Xia confirmed a hack on November 2 and called the loss small.
- Bitquery traced about $391,000 in outflows from BitMart-linked wallets to an address used in the Mercado Bitcoin attack.
- Xia said BitMart’s security team is severely understaffed after restructuring and staff departures.
- Mercado Bitcoin’s reported losses range from $36.3 million to $49 million, depending on the source.
- BitMart plans to adjust its restructuring proposal in November and seek court applications in December 2026 or January 2027.
BitMart has confirmed a second security breach, and the exchange says its own staffing problems made defense harder. Founder Sheldon Xia posted about the incident on X on November 3. The hack took place on November 2.
BitMart Founder: Exchange Hit by Minor Hack, Potentially Linked to Mercado Bitcoin Attackers
Sheldon Xia, founder of crypto exchange BitMart, confirmed that the platform suffered a minor security breach yesterday, noting that swift investigative and security-strengthening… pic.twitter.com/EXNUUGAA1y
— Wu Blockchain (@WuBlockchain) November 4, 2026
“Yes, we got hacked yesterday too,” Xia wrote. He said the amount was small and that the company moved quickly to investigate and tighten security.
Xia did not say how much was lost. He also did not name the affected systems or say whether customer funds or personal data were exposed.
The Link to Mercado Bitcoin
Xia said early findings suggest the same group that hit Mercado Bitcoin may have attacked BitMart. The idea came from blockchain activity shared by both platforms.
Blockchain analytics firm Bitquery found about $391,000 had left wallets mostly tied to BitMart. The money went to an address used in the Mercado Bitcoin attack. The outflows began about 53 minutes before the larger attack.
An X user named NeyLong also pointed out transfers from BitMart-linked wallets to an address that had received funds from the Brazilian exchange. The transfers involved several cryptocurrencies.
One source noted that a shared receiving address does not prove the same attackers ran both operations. BitMart has also not confirmed that it owns every wallet named in the findings.
Security Team Shortage
Xia said the exchange kept only a core team after its restructuring. He said doxxing, threats from users and actions by former employees made it hard to keep technical staff.
He named Elly, BitMart’s former head of marketing operations, as taking part in retaliatory actions against the company. Xia said some key technical workers stayed only after individual conversations.
“Our security team is currently severely understaffed, but we are still doing everything we can to safeguard data and assets,” Xia wrote. BitMart still holds funds for users.
Where BitMart’s Restructuring Stands
BitMart announced plans to wind down its exchange in July and halted trading in August. It then hired Alvarez & Marsal as its financial adviser. The firm is reviewing assets, liabilities and customer withdrawal plans.
The exchange later opened a portal to collect feedback from affected customers. Its proposal lets users choose between upfront payouts and a possibly higher recovery over a longer period.
In that proposal, BitMart blamed part of its financial trouble on a December 2021 hack. The exchange said that attack drained about $319.5 million in reserves. That included $164.1 million in Ethereum, $96.5 million in BNB and $51.5 million in Bitcoin.
BitMart also pointed to weaker trading revenue. It said groups that exploited its futures trading incentives caused further losses.
Mercado Bitcoin Loss Estimates
Mercado Bitcoin is one of Brazil’s largest crypto exchanges. It confirmed on November 2 that one of its systems was compromised. It paused deposits and withdrawals while its team investigated.
The exchange first said customers were not harmed and no data was breached. Blockchain tracking later showed large movements from its wallets across several networks.
Mercado Bitcoin gave two different estimates. One report put the affected assets at about $38 million, with around $11 million blocked. Another report cited $36.3 million affected and $12.9 million blocked.
Chainalysis estimated the theft at about $49 million. It said it helped coordinate the freezing of nearly $10 million. Bitquery put the figure at about $48.6 million across 10 blockchains.
Mercado Bitcoin said customers will not bear the losses. It published destination wallet addresses on Ethereum-compatible networks, Bitcoin, Solana, Stellar and Tron to help track the funds.
The exchange plans to restore customer access in stages after security checks on each service. BitMart expects to adjust its restructuring proposal in November. Its investigation into the suspected link to the Mercado Bitcoin attackers is still ongoing.
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