BitMart Reports $391,000 Hack During Court-Supervised Restructuring
Cryptocurrency exchange BitMart has reported a security breach resulting in approximately $391,000 in stolen funds, adding another challenge to the platform as it works through a court-supervised restructuring and repayment process. The incident occurred on November 2, 2026, and involved wallets across three Ethereum layer-2 networks: Base, Arbitrum, and Optimism.
Founder Sheldon Xia confirmed the incident in a post on X on November 3, describing it as a small-scale breach involving a limited amount of funds. He said BitMart had launched an immediate investigation to strengthen its security defenses.
BitMart Identifies Security Staffing Challenges
Xia also acknowledged that the exchange's security team had been understaffed during the restructuring process. He highlighted staffing difficulties and threats the company had faced while undergoing the restructuring.
The incident comes as BitMart operates under significantly reduced activity. The exchange announced its wind-down on July 26, 2026, and halted all trading activities by August 26. It is now working through a court-supervised restructuring intended to establish a repayment plan for users owed funds.
Users have also raised complaints about withdrawal problems, adding to concerns surrounding the recovery process.
On-Chain Analysis Links Attack to Mercado Bitcoin Incident
Research findings point to a possible connection between the BitMart breach and a substantially larger attack on cryptocurrency exchange Mercado Bitcoin. On-chain analysis reportedly indicates that attackers targeted BitMart wallets approximately 53 minutes before striking Mercado Bitcoin.
The Mercado Bitcoin incident resulted in estimated losses of around $48.6 million, far exceeding the $391,000 reportedly taken from BitMart.
However, the connection between the two attacks has been drawn from on-chain data and has not been formally confirmed. The possibility that the incidents involved the same attackers therefore remains a working theory rather than an established attribution.
BitMart Faces Legacy of 2021 Security Breach
The latest incident follows a major security breach on December 4, 2021, when attackers drained BitMart's hot wallets on Ethereum and BNB Smart Chain. Estimated losses from that incident ranged between $150 million and $196 million.
Research findings indicate that the current restructuring has been partially attributed to the consequences of the 2021 hack. Restructuring documents also identify a projected shortfall of $319.5 million based on 2021 pricing.
The historical losses remain a significant part of the exchange's financial difficulties as it attempts to address outstanding user obligations.
New Losses Add Pressure to BitMart Repayment Process
The $391,000 loss creates another financial setback for creditors and users awaiting repayment. With the exchange already facing a projected shortfall measured in hundreds of millions of dollars, any additional loss could further complicate its efforts to meet outstanding obligations.
Xia's acknowledgment of security staffing shortages also raises questions about the exchange's ability to protect remaining funds while operating through restructuring. BitMart continues to hold assets that users are waiting to recover, even though trading has stopped.
The possible connection to Mercado Bitcoin also raises broader security questions for centralized exchanges. If the on-chain sequence reflects activity by the same attackers, other platforms may need to review their exposure across layer-2 networks, including Base, Arbitrum, and Optimism.
Key developments to watch include the findings of BitMart's investigation, whether authorities or investigators formally establish a connection with the Mercado Bitcoin attack, and whether the latest loss changes the timeline or terms of BitMart's repayment plan.
source: cryptobriefing
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
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