FTC Investigating BitMart After $200M Crypto Theft!

12 August 2022 Internet, IT & e-Discovery Blog Blog

BankInfoSecurity.com reported that “The U.S. Federal Trade Commission is investigating the operators of a cryptocurrency platform that lost $200 million of investor funds in one of the biggest crypto cyberattacks of 2021.”  The August 11, 2022 report entitled “FTC Probes BitMart After $200M Theft at Crypto Exchange” included these comments:

In December 2021, nearly $200 million was stolen from BitMart, blockchain analytics firm PeckShield estimated. PeckShield's assessment at the time showed that the company lost approximately $100 million in several cryptocurrencies on the Ethereum blockchain and another $96 million in coins on the Binance Smart Chain.

BitMart CEO Sheldon Xia said in a tweet that the company would use its own funding to cover losses for affected users, adding later that an internal investigation showed that the breach "was mainly caused by a stolen private key."

BitMart customers earlier this year said they had yet to receive reimbursements.

It will be interesting to see the results of the probe!

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