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Mercado Bitcoin, one of Brazil’s largest crypto exchanges, says it will cover all customer losses from a November 2, 2026, hack that drained about $38 million from its hot wallets across at least 10 blockchains.
The exchange says $11 million of the stolen funds is frozen with help from Tether, Circle and Chainalysis. The breach comes days after Binance reported a $6.3 billion hot wallet hack.
The November 2 attack targeted cryptocurrency held in the exchange’s hot wallets, which are connected to online systems to facilitate transactions and withdrawals.
According to initial findings, attackers transferred assets from wallets associated with the platform across at least 10 different blockchain networks.
Security researchers initially estimated that more than $40 million had been stolen, reflecting the scale of the unauthorized transfers detected during the incident.
However, the exchange later reported that its internal assessment placed the losses at approximately $38 million.
The difference between the estimates highlights the challenges of calculating losses during a rapidly developing cryptocurrency security investigation.
Digital assets can move between different networks and wallet addresses within minutes, making it necessary for investigators to examine numerous transactions before determining the full extent of an incident.
Following the discovery, Mercado Bitcoin temporarily suspended access to its platform as a precautionary measure.
The decision was intended to prevent further unauthorized activity while its security teams investigated the breach and assessed the affected infrastructure.
The company also confirmed that no customer data had been compromised.
This distinction is important because the reported incident involved unauthorized cryptocurrency transfers rather than a confirmed exposure of customers’ personal information.
Nevertheless, the loss of funds from exchange-controlled wallets represented a significant operational security incident.
The company has not publicly identified the individuals responsible for the attack or disclosed a confirmed technical explanation for how the wallets were compromised.
Investigations remain underway to determine the circumstances surrounding the unauthorized withdrawals.
As investigations progressed, the exchange coordinated with cryptocurrency industry partners to identify and restrict the movement of stolen assets.
According to the company’s latest statement, approximately $11 million in affected cryptocurrency had been frozen with assistance from Tether, Circle, and Chainalysis.
The intervention represents an important step toward limiting the financial damage caused by the breach.
Tether and Circle issue widely used dollar-pegged stablecoins, USDT and USDC, respectively.
Both companies have mechanisms that can restrict transfers involving certain tokens when the appropriate conditions are met.
These capabilities can assist exchanges and law enforcement agencies in responding to cryptocurrency thefts, particularly when stolen assets remain in stablecoins controlled by identifiable issuers.
Chainalysis, meanwhile, provides blockchain intelligence tools used to trace cryptocurrency transactions and identify wallet addresses associated with suspicious activity.
The company’s involvement supports efforts to follow stolen assets as they move through different blockchain networks.
In the Mercado Bitcoin investigation, cooperation between the exchange, stablecoin issuers, and analytics specialists helped authorities and industry participants identify assets that could be restricted.
However, freezing stolen cryptocurrency does not automatically mean that the funds have been returned to the exchange.
Additional legal, technical, or operational procedures may be required before frozen assets can be recovered.
The reported $11 million represents approximately 29% of the exchange’s estimated $38 million loss.
This leaves a substantial portion of the affected assets outside the amount reported as frozen, although the ultimate recovery figure could change as investigators continue tracing transactions.
The coordinated response demonstrates the role of industry cooperation in disrupting cryptocurrency thefts and limiting the ability of attackers to transfer stolen funds.
Despite the scale of the attack, the Brazilian cryptocurrency exchange has maintained that customers will not bear financial losses arising from the incident.
The company said it would cover the approximately $38 million shortfall while continuing efforts to recover stolen assets.
The commitment is significant because cryptocurrency exchange customers generally depend on custodial platforms to safeguard digital assets held on their behalf.
When an exchange’s hot wallets are compromised, the financial consequences can affect the institution’s ability to meet withdrawal requests and maintain sufficient customer balances.
By pledging full reimbursement, Mercado Bitcoin has sought to reassure users that their holdings will remain protected despite the security breach.
The company has also confirmed that its teams are investigating the incident, monitoring stolen cryptocurrency, and coordinating with relevant authorities.
However, the exchange has not provided a detailed public timeline for completing all recovery and reimbursement procedures in the supplied report.
The precise financial impact on the company will also depend partly on how much stolen cryptocurrency can ultimately be recovered.
For customers, the central concern remains whether the exchange can fully restore affected balances while maintaining normal trading and withdrawal services.
The temporary suspension of platform access reflects the need to balance service availability with efforts to prevent additional losses.
The incident also highlights the risks associated with hot-wallet infrastructure.
Unlike offline storage systems, hot wallets remain connected to networks that support cryptocurrency transactions.
This accessibility allows exchanges to process transfers efficiently but can also create security exposure when attackers gain unauthorized access.
The exchange’s response therefore places renewed attention on how centralized cryptocurrency platforms manage digital asset custody and respond to security emergencies.
The attack on Mercado Bitcoin occurred only days after cryptocurrency exchange Binance suffered a separate security breach involving more than $6 billion in digital assets.
Binance’s October 29 incident triggered extensive efforts by law enforcement agencies, blockchain analytics companies, and cryptocurrency service providers to trace stolen funds.
The FBI subsequently attributed the Binance theft to North Korean hackers operating under the name TraderTraitor.
Authorities also urged cryptocurrency businesses to restrict transactions involving wallet addresses linked to that investigation.
Binance began restoring cryptocurrency withdrawals on November 1 after temporarily suspending services during its security response.
Although the incidents occurred within days of each other, there is no confirmed evidence in the supplied report connecting the attackers responsible for the two breaches.
The Brazilian exchange’s incident should therefore be treated as a separate security investigation.
Nevertheless, the successive attacks have intensified attention on the vulnerabilities facing centralized cryptocurrency platforms.
Both cases involved significant unauthorized cryptocurrency transfers, emergency operational restrictions, and cooperation with external security organizations.
The incidents also demonstrate the importance of early detection and rapid coordination when stolen digital assets begin moving across multiple blockchain networks.
As investigators continue tracing the funds, Mercado Bitcoin faces the immediate challenge of completing its security review, restoring confidence in its platform, and fulfilling its commitment to compensate affected customers.
The company’s pledge to absorb the losses provides reassurance, but the effectiveness of its response will depend on the completion of recovery efforts and the strength of measures introduced to prevent similar incidents.
With $11 million reportedly frozen and investigations continuing, the Brazilian exchange remains focused on recovering stolen assets while protecting customers from the financial consequences of the attack.
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