Mercado Bitcoin will cover losses after $40M breach

Mercado Bitcoin says it will cover losses from a security breach at Brazil’s largest crypto exchange, after blockchain trackers estimated that as much as $46.3 million in assets left wallets tied to the platform. The exchange says customers will not lose funds, but deposits and withdrawals remain paused while it checks its systems.

In its latest report on the exchange’s pledge, CoinDesk said Mercado Bitcoin put the amount lost at about $38 million and agreed to cover it. The exchange has not publicly explained how the breach happened.

How much was taken, and how much has been frozen?

The estimates differ. Mercado Bitcoin put the assets involved at about $38 million. Arkham data cited by The Block put the amount at about $46.3 million, while blockchain analytics firm Chainalysis estimated about $49 million. These are separate estimates, not a final agreed total.

CoinDesk reported that Tether, Circle and Chainalysis helped freeze $11 million of the assets. The Block separately reported that Tether froze more than 4.5 million USDT, a digital token designed to track the US dollar. The figures may reflect updates at different points in the response.

What happened to customer accounts and withdrawals?

The exchange said no customer data was leaked and that customers would not bear the losses. It temporarily suspended deposits and withdrawals as a precaution. The suspension limits customers’ ability to move funds through the platform while the investigation continues.

Mercado Bitcoin has been tracing the assets and coordinating with authorities and industry partners. It has not said when deposits and withdrawals will resume. The exchange says it will cover the losses, but the breach’s cause and the final amount recovered remain unclear.

References

• latest report on the exchange’s pledge — coindesk.com