- Brazilian cryptocurrency exchange Mercado Bitcoin will begin restoring customer account access on Monday following a security breach involving more than $46 million in stolen assets.
- The first phase will allow customers to view account balances, transaction statements and investments, while trading and withdrawals will resume later after security checks.
- The exchange has promised to use its own funds to replace affected assets and said more than $15 million worth of stolen funds have already been frozen.
Mercado Bitcoin Outlines Plans To Slowly Recover Accounts
Brazilian crypto exchange Mercado Bitcoin has set out how it will start the process of opening up customer accounts again after the breach in its security which led to over $46million worth of digital assets being stolen.
On Monday the company will start opening accounts for customers, but they will only be able to view their balance, statements, holdings and investments. They will only be able to trade, transfer and withdraw funds at a later date.
The firm added that they are taking a slow approach to ensure the security systems are safe. This allows customers to get access to their account details. The breach was revealed earlier this week after the company said hackers accessed their hot wallets and some customers’ deposit addresses.
Funds Will Be Covered By The Company
The company has assured customers that it will cover the lost assets using its own funds. It also said that over $15million worth of funds have been frozen with the help of others in the crypto space.
Source: x.com
The exchange said its trading desk is ready to buy back the assets required from both domestic and international markets. This shows that the company will be covering the losses. Although freezing the stolen cryptos can help stop the hackers from moving or converting the funds, it can take longer to recover them.
Healthy Cashflow To Help
The exchange has also said that it has healthy cashflow which will help during the recovery process. The company has said:
“We have a strong cash position which will help us during this recovery process.” It has also received a $20million investment from stable coin issuer Tether to help with its growth.
This breach has once again shown the risks involved with keeping digital assets on crypto exchanges. As they are held in online wallets they are vulnerable.
The main thing for Mercado Bitcoin will be rebuilding trust with customers by putting security measures in place and getting everything back to normal. A successful slow opening will show customers that their funds are secure and their details are safe.
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