TLDR
- BitMart founder Sheldon Xia says the exchange’s security team is “severely understaffed” after a new hack on Monday.
- Bitquery found about $391,000 in suspicious transfers from wallets mostly tied to BitMart across three blockchains.
- The funds were traced to a wallet also linked to the $46 million Mercado Bitcoin hack in Brazil.
- BitMart published a restructuring plan on Monday with three recovery options for users.
- The T3 crime unit formed by Tron, Tether and TRM Labs has disbanded, Bloomberg reports.
Crypto exchange BitMart says it is running with a short-staffed security team, days after a new hack hit the platform. Blockchain analysts say funds from the attack moved to a wallet also tied to a breach at a Brazilian exchange.
Founder Sheldon Xia shared the update in a post on X on Wednesday. He called the team “severely understaffed” but said staff were still working to protect data and assets.
Yes, we got hacked yesterday too. The amount involved was small, and we acted quickly to investigate and strengthen security.
As a result of the restructuring, we have retained only a core team. Doxxing and threats from users, along with retaliation by certain disgruntled…
— Sheldon (@sheldonbitmart) November 3, 2026
Xia said threats against employees have made it harder to keep technical staff. He also pointed to alleged retaliation by former workers.
“It took considerable effort and individual conversations to persuade some key technical staff to remain and maintain our core systems,” Xia wrote. He added that the exchange continues to face “numerous attacks.”
Xia described the amount taken in Monday’s hack as small. He did not share an exact figure.
The breach follows months of uncertainty about the exchange. In July, BitMart said it would end trading on Aug. 26 and shut down in January 2027.
After that announcement, users reported delayed withdrawals and frozen accounts. Some raised concerns about whether they could reach their funds.
In August, BitMart’s Chinese-language X account claimed employees had not been paid and demanded answers about customer funds. Xia said the claims were fabricated, though it was unclear who controlled the account at the time.
On Monday, the exchange published a restructuring proposal with three possible recovery options for users. These include liquid asset distributions and tokens tied to recovery. BitMart plans to seek court approval in December or January.
Cointelegraph asked BitMart about the restructuring, staffing and the latest breach. The exchange had not responded by publication.
Funds Traced to Mercado Bitcoin Wallet
Blockchain analytics firm Bitquery published an investigation into the BitMart breach on Wednesday. It found about $391,000 in suspicious transfers from wallets mostly tied to BitMart.
The transfers took place across three blockchains. Bitquery traced the funds to a wallet that was also linked to the Mercado Bitcoin hack.
Mercado Bitcoin, an exchange based in Brazil, lost more than $46 million in an attack on Monday, Nov. 2. That is the same day BitMart was hit.
Xia had earlier said he suspected the two incidents could be connected. The Bitquery findings support that early view.
Crime-Fighting Alliance Breaks Up
In separate news, a crypto crime-fighting group formed by Tron, Tether and TRM Labs has dissolved, Bloomberg reported Wednesday. The group was known as the T3 Financial Crime Unit.
T3 launched in September 2024 and was later joined by Binance. People familiar with the matter told Bloomberg the group struggled with slow responses and poor coordination.
One source said the group disbanded in late August. In May, T3 said it had helped freeze more than $450 million in assets linked to suspected criminal activity since its launch.
The breakup comes during a wave of major crypto hacks. Last week, Binance suffered a $6.3 billion breach, the largest cryptocurrency theft on record.
