BitMart to compensate victims of $196 million hack, restore trading

  30. November 2020, von Sebastian

Using any cryptocurrency exchange carries a degree of risk, and BitMart experienced a large-scale security breach when $196 million in cryptocurrency was stolen in December 2021. However, the company took measures to strengthen its security and has pledged to compensate its clients. In 2018, BitMart launched the BitMart Token (BMX), which provides token holders with trading discounts and other benefits on the exchange. BitMart is a global crypto exchange that both beginners and experienced traders can use to buy and sell an exceptionally long list of digital assets. The exchange also offers a range of yield-generation opportunities for crypto holders and gives users early access to tokens issued via its in-house token launchpad.

However, the large-scale hack that the exchange suffered in December 2021 is concerning. Customer wallets were affected, and almost $200 million in funds were stolen by hackers. There have also been numerous reports about issues withdrawing assets, which may deter new users from signing up. Bitmart wrote in an official statement Monday morning that it had completed initial security checks and identified the affected assets. The exchange said the security breach was mainly caused by a stolen private key, which affected two of its hot wallets, but other assets were „safe and unharmed.“

  1. Because there may be time differences in information updates, accurate information about each ICO project should be verified through its official website or other communication channels.
  2. GOPX “Game On Players” Token is the only digital currency that buys and sells itself through its own financial ecosystem.
  3. When it comes to depositing options, BitMart offers users a variety of ways to fund their accounts.
  4. Peckshield estimated that Bitmart lost around $100 million in various cryptocurrencies on the ethereum blockchain and another $96 million from coins on the binance smart chain.
  5. Compared to its initial token sale price, GOPX is currently showing an ROI of 0.00x against the US dollar, 0.00x against Bitcoin, and 0.00x gopx bitmart against Ethereum.

The GOPX Token can be used to pay direct royalty funds to artists and the music industry (NFT) allowing millions of individuals to easily take part in this burgeoning tokenized economy. Bitmart offers a mix of spot transactions, leveraged futures trading, as well as lending and staking services. Its trading volume, however, has gone down by „a lot“ since the hack, according to CoinGecko co-founder and chief operating officer Bobby Ong.

Therefore, unless user terms specify otherwise, investors with cryptocurrency assets commingled on a custodial cryptocurrency exchange could potentially lose their funds as unsecured creditors. BitMart’s website notes an „advanced risk control system,“ operating a hybrid hot and cold wallet system and deploying multi-signature technologies. However, the $196 million hack the exchange experienced in December 2021 suggests that BitMart’s security could use some work. Peckshield estimated that Bitmart lost around $100 million in various cryptocurrencies on the ethereum blockchain and another $96 million from coins on the binance smart chain.

BitMart has a tiered fee structure, where users with higher trading volumes (based on trading volume over a 30-day period in BTC) pay lower fees. Fee deductions apply to BMX token holders who use the token to cover trading fees. BitMart beginners can take advantage of the site’s online handbook, https://cryptolisting.org/ which offers a step-by-step process for using the site to buy, sell, and trade cryptocurrencies. In addition, beginners can also use the platform’s Buy & Sell feature that allows users to buy Bitcoin (BTC) and other cryptocurrencies using Visa, Mastercard, Apple Pay, and PayPal.

Futures

Ong says that while some exchanges purchase insurance coverage for their crypto holdings, this is not a uniform practice across the industry. BitMart provides you with the most convenient, fast and professional crypto spot & margin trading services. BitMart provides you with the most convenient, fast and professional crypto trading services. What happened following the breach was pretty straightforward, according to Peckshield. It was a classic case of „transfer-out, swap, and wash,“ according to the security firm. Professional services including Sub-Account, Credit Line, Competitive Fees & Rebate.

Security

With a bear market in full swing and inflation at record highs, I would like to discuss our plans going forward. We have a very exciting future ahead of us and some changes coming in the next few months. Compared to its initial token sale price, GOPX is currently showing an ROI of 0.00x against the US dollar, 0.00x against Bitcoin, and 0.00x gopx bitmart against Ethereum. BitMart is allowed in the United States, but its Earn and Lending products are not available to U.S.-based users. Companies looking to open an institutional trading account must complete a more detailed onboarding process.

Like many other cryptocurrency exchanges, it doesn’t offer phone support to its customers, so you will have to rely on its chat feature to get answers in real-time. While BitMart has announced that it will reimburse all affected customers, a breach of this size suggests the exchange’s security measures could be improved. We also considered if the exchange is regulated by an appropriate agency or entirely decentralized.

What makes BitMart stand out among its peers is the large number of digital currencies and tokens offered on the platform. With over 1,000 tradable digital assets, traders who prefer to speculate on smaller altcoins and newly-issued tokens will appreciate what BitMart offers its customers. While BitMart has announced that it will reimburse all affected customers, a breach of this size suggests the exchange’s security measures could be improved.

Opening a BitMart Account

If you would like to know where to buy BitMart Token at the current rate, the top cryptocurrency exchanges for trading in BitMart Token stock are currently BitMart, and GroveX. After transferring the funds out of Bitmart, hackers apparently used the decentralized exchange aggregator known as „1inch“ to exchange the stolen gopx bitmart tokens for ether. From there, the ether coins were deposited into a privacy mixer known as Tornado Cash, which makes the money harder to trace. CNBC also asked if the exchange was running an internal audit to gauge whether anything ran afoul within its own ranks, and again, BitMart opted not to respond to that question.

BitMart offers many of the same products and services as leading global exchanges, such as Binance, CEX.IO, Poloniex, and Huobi Global. U.S. customers can trade on BitMart, but the exchange’s Earn and Lending products are unavailable to users in the United States. BitMart provides a web-based digital asset trading and investing platform and a mobile app for Android and iOS.

The affected ethereum and binance smart chain „hot wallets“ carried only a „small percentage“ of the exchange’s assets, according to the company. A hot wallet is connected to the internet and allows owners relatively easy access to their coins so that they can access and spend their crypto. Investopedia is dedicated to helping those interested in cryptocurrency investing make informed and safe decisions by sharing our methodology for rating cryptocurrency exchanges.

In early December, BitMart wrotein an official statementthat it would use its own money to reimburse victims of the large-scale security breach, which the exchange blamed on a stolen private key. Because there may be time differences in information updates, accurate information about each ICO project should be verified through its official website or other communication channels. While BitMart offers all the features you’d expect from a global crypto exchange, it was hacked in December 2021, which resulted in an estimated $196 million cryptocurrency theft. BitMart is a legitimate cryptocurrency exchange with over nine million users in over 180 countries, according to its website. The exchange has over 1,000 cryptocurrencies listed, and it is set up for beginners and experienced traders to buy and sell from its website.

Others have asked why BitMart isn’t going through insurance to reimburse stolen funds. The Game On Players token sale started on Jun 21, 2021, and lasted until Jun 1, 2023. And in August, a hacker stole more than $600 million worth of tokens from the cryptocurrency platform Poly Network. In a strange twist, the attacker subsequently returned nearly all of the money. However, blockchain security and data analytics firm Peckshield, which first publicized the hack, estimates that the loss is closer to $200 million. CNBC reached out to Bitmart to ask about the multimillion dollar discrepancy, but the exchange declined to comment on this point.

 

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