Mercado Bitcoin security breach and withdrawal freeze

Mercado Bitcoin is responding to a crypto breach by freezing withdrawals while suspicious assets are traced, blocked and sold.

Mercado Bitcoin halted deposits, withdrawals and trading after a Nov 2 cyberattack and said it would use its own capital to reimburse affected assets. On-chain analysts reported that the attacker sold altcoins and consolidated part of the stolen portfolio into Ether. Estimated losses have risen to $48.6 million across 11 blockchains, while a limited Nov 9 reopening will only let clients view balances.

The incident affects Mercado Bitcoin users, exchange-security practices, Latin American crypto confidence, issuers, investigators and regulators.

• The incident began on Nov 2. • Deposits, withdrawals and trading remain suspended. • Mercado Bitcoin previously said it blocked $12.9 million of $36.3 million in affected assets. • Lookonchain said the attacker converted stolen altcoins into 7,988 ETH. • The latest supplied estimate puts losses at $48.6 million.