Mercado Bitcoin, one of Brazil’s leading cryptocurrency exchanges, will resume deposits and withdrawals in Brazilian reais via the nation’s instant payment platform, Pix, next week. This move follows a security breach that resulted in an estimated $49 million being drained from wallets associated with the platform.
Gradual return of services
According to a company spokesperson, customers will only be permitted to withdraw funds to accounts registered in their own name, ensuring an additional layer of verification. The exchange will also process and credit proceeds to client accounts arising from the settlement of fixed income products during the interruption.
Crypto deposits and withdrawals, however, remain on hold. The company has not yet provided a timeline for when these transactions will be restored.
Mercado Bitcoin started restoring limited access to accounts on Monday, approximately one week after the cyberattack. In this initial phase, customers could view their balances and transaction history in read-only mode but could not conduct any transactions. Upon logging in, users are guided to a page outlining the company’s security protocols and its history of regular security audits dating back to 2018. The exchange has also made available a dedicated account of the recent incident for affected users.
Fabricio Tota, who serves as vice president of new business at Mercado Bitcoin, described the upcoming steps for the platform’s gradual reopening. Tota emphasized that the reintroduction of services will occur in a phased manner, with clients receiving communication about each rollout through the exchange’s official channels.
“The resumption will proceed gradually, and the rollout of additional services will be communicated to clients in advance through MB’s official channels,” the company stated.
Broader security context
The incident at Mercado Bitcoin took place on November 2, less than a week after another notable breach in the global crypto sector. Four days earlier, hackers managed to steal approximately $6.3 billion in digital assets from Binance, one of the world’s largest cryptocurrency exchanges, by exploiting vulnerabilities in its hot wallets. The US Federal Bureau of Investigation (FBI) attributed the theft from Binance to North Korean hacking groups.
In response to the Binance breach, the exchange announced it would use its emergency fund and corporate reserves to cover client losses, underscoring the heightened precautions major exchanges are taking amid a rise in cyberattacks.
The consecutive attacks have prompted crypto platforms in both Latin America and Asia to reassess and reinforce their security protocols as hackers target increasingly sophisticated weaknesses.
Mini dictionary: Pix, introduced by the Central Bank of Brazil, is an instant payment system that allows 24/7 transfers and payments in Brazilian reais, offering users rapid settlement and convenience compared to traditional bank transfers.
Mercado Bitcoin, established as a pioneer in the Latin American crypto market, continues its efforts to restore regular operations, prioritizing both security and transparency as it recovers from the major breach.
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