Mercado Bitcoin Pledges to Cover User Losses After $38 Million Breach

Mercado Bitcoin, a Brazilian crypto exchange, pledged to cover user losses after disclosing a security breach on Nov. 2 that involved about $38 million in stolen digital assets.

Suspicious transfers were estimated at more than $46 million, a figure that has not been reconciled with the roughly $38 million theft figure. Mercado Bitcoin has not provided a final net-loss figure. The reported $11 million freeze is separate from both estimates.

The exchange halted deposits, withdrawals and other platform services and notified authorities. An initial analysis suggested attackers may have gained control of credentials used to approve transactions, but the entry route remains undetermined.

Mercado Bitcoin said it worked with Tether, Circle, Paxos, BRL1 and Chainalysis to freeze about $11 million in assets and identify additional funds that may be frozen. The company has not announced when services will resume.

The suspicious transfers involved Ethereum, Bitcoin (BTC), Solana, Stellar, Arbitrum, Tron and Polygon.