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!
This blog is made available by Foley & Lardner LLP (“Foley” or “the Firm”) for informational purposes only. It is not meant to convey the Firm’s legal position on behalf of any client, nor is it intended to convey specific legal advice. Any opinions expressed in this article do not necessarily reflect the views of Foley & Lardner LLP, its partners, or its clients. Accordingly, do not act upon this information without seeking counsel from a licensed attorney. This blog is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Communicating with Foley through this website by email, blog post, or otherwise, does not create an attorney-client relationship for any legal matter. Therefore, any communication or material you transmit to Foley through this blog, whether by email, blog post or any other manner, will not be treated as confidential or proprietary. The information on this blog is published “AS IS” and is not guaranteed to be complete, accurate, and or up-to-date. Foley makes no representations or warranties of any kind, express or implied, as to the operation or content of the site. Foley expressly disclaims all other guarantees, warranties, conditions and representations of any kind, either express or implied, whether arising under any statute, law, commercial use or otherwise, including implied warranties of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Foley or any of its partners, officers, employees, agents or affiliates be liable, directly or indirectly, under any theory of law (contract, tort, negligence or otherwise), to you or anyone else, for any claims, losses or damages, direct, indirect special, incidental, punitive or consequential, resulting from or occasioned by the creation, use of or reliance on this site (including information and other content) or any third party websites or the information, resources or material accessed through any such websites. In some jurisdictions, the contents of this blog may be considered Attorney Advertising. If applicable, please note that prior results do not guarantee a similar outcome. Photographs are for dramatization purposes only and may include models. Likenesses do not necessarily imply current client, partnership or employee status.