Bitmart to reimburse $200 million to customer

[Wiwo]

I received an email from bitemark on the 5th of December informing me about an attack on its got wallet which is hosted in two blockchains Bianca smart chain and Ethereum blockchain. As a result of that a total of $200 million worth of assets ranging from Bitcoin, baby don't, and some other coin. The news of the reimbursement came as a great relief to victims.
https://cointelegraph.com/news/bitmart-pledges-to-reimburse-hack-victims-as-crypto-community-voices-support

[1715018075]

1715018075

[DeathAngel]

Not your keys, not your bitcoin.

There’s a reason this phrase became so commonly used in cryptoland. Too many people get comfortable leaving their assets on third party exchanges. Why leave your money in anybody else’s control?
You should only transfer coins to online platforms when you plan to sell them. Do not leave your money in anybody else’s control.

There are too many stories of people losing their money, it’s sad.

[Wiwo]

Not your keys, not your bitcoin.

There’s a reason this phrase became so commonly used in cryptoland. Too many people get comfortable leaving their assets on third party exchanges. Why leave your money in anybody else’s control?
You should only transfer coins to online platforms when you plan to sell them. Do not leave your money in anybody else’s control.

There are too many stories of people losing their money, it’s sad.

Very correct exchange wallets are not reliable and are always prone to attacks because the wallet is custodial so the security system is always under attack, you should hold your money in a none custodial wallet with your private keys saved and secured by you.

[laurenB7742]

I received an email from bitemark on the 5th of December informing me about an attack on its got wallet which is hosted in two blockchains Bianca smart chain and Ethereum blockchain. As a result of that a total of $200 million worth of assets ranging from Bitcoin, baby don't, and some other coin. The news of the reimbursement came as a great relief to victims.

That's why crypto should never be hold in these exchanges. A hardware or software wallet should be used to hold crypto.

Everyone holds the coin on the exchanges to avoid the risk of instant dump for fear of the liquidity of the coin but never thinks about the risk of hacking on the exchanges. If the price of a coin is fallen, there is a chance to recover it, but if are a victim of hacking, how will it be recovered?

BTW, I hope you get the compensation, this is a lesson for you, you should never hold on to the exchange.

[Woodie]

Not your keys, not your bitcoin.

crypto 101 on how w to protect your crypto asset!

There are too many stories of people losing their money, it’s sad.

But if Bitmark is owning up and taking the responsibility of reimbursing its customers, I think it's a win for us and a loss on their side  .

Do we have insurance companies that take cover for crypto assets and  if we do is this possible as we might have bad players that might defraud the insurance company.

[DaveF]

If they have insurance, then the insurance company would have come down and taken a look at how they do business, security practices, and so on.
Then the insurance company, goes back and comes up with an amount per month / quarter / year to cover any loss that might occur. And if one does they investigate and pay.
Does not matter what business that we are talking about. Be it an exchange or anything else.

So if they did have insurance, they the way they operated WAS insurable. And they were operating that way, because if they are getting money you can be sure their insurance investigated before they wrote a check that big.

If they did not have insurance and are covering the loss out of pocket, how much profit are they making to cover $200 million?

-Dave

[_BlackStar]

The hacking incident will only remind me of not your keys, not your bitcoin. Obviously an exchange is not a safe place to keep fund regardless of how good the security system the exchange has.

I invested in bitcoin before I registered on this forum, I thought the exchange would be safe to hold some of the asset I own but after a while I started to gain knowledge that I need to have a special wallet to keep my funds safe.  If it's bitcoin, then electrum is one of the recommended ones for a wallet, but not a few have also advised me to have a hardware wallet.

I think it's good that the exchange would be responsible for losing user fund, but unfortunately it has put their reputation in question more and more because they failed to have a good system in place for security. Binance has experienced that too, so whatever now we really have to have the desire to secure fund in private wallet unless we are traders.

[CaVO32]

If they have insurance, then the insurance company would have come down and taken a look at how they do business, security practices, and so on.
Then the insurance company, goes back and comes up with an amount per month / quarter / year to cover any loss that might occur. And if one does they investigate and pay.
Does not matter what business that we are talking about. Be it an exchange or anything else.

So if they did have insurance, they the way they operated WAS insurable. And they were operating that way, because if they are getting money you can be sure their insurance investigated before they wrote a check that big.

If they did not have insurance and are covering the loss out of pocket, how much profit are they making to cover $200 million?

-Dave

I only know Binance as having insurance (SAFU), but this bitmart exchange, honestly, just heard this exchange because of this recent hack. Also, if the OP can give a link so people can read about this recent hack.

https://cointelegraph.com/news/bitmart-pledges-to-reimburse-hack-victims-as-crypto-community-voices-support

From the article, it is stated that the exchange will shoulder the losses. So don't know how they will cover those multi-million dollar losses. For their users, check their fees later on.

[Sirait]

I received an email from bitemark on the 5th of December informing me about an attack on its got wallet which is hosted in two blockchains Bianca smart chain and Ethereum blockchain. As a result of that a total of $200 million worth of assets ranging from Bitcoin, baby don't, and some other coin. The news of the reimbursement came as a great relief to victims.

they will reimburse that money? I seem to see a strange scenario here, they are like doing a drama to attract the sympathy of others that their exchange is a responsible exchange.

if you have a large enough capital do not trade on exchanges that do not have a good reputation, you better trade your btc on DEX.

[Baofeng]

I received an email from bitemark on the 5th of December informing me about an attack on its got wallet which is hosted in two blockchains Bianca smart chain and Ethereum blockchain. As a result of that a total of $200 million worth of assets ranging from Bitcoin, baby don't, and some other coin. The news of the reimbursement came as a great relief to victims.

they will reimburse that money? I seem to see a strange scenario here, they are like doing a drama to attract the sympathy of others that their exchange is a responsible exchange.

if you have a large enough capital do not trade on exchanges that do not have a good reputation, you better trade your btc on DEX.

Read the article above you, yes, they are doing that so bring back their customers confidence again to their exchange and to the whole crypto market itself. And the CEO says that they are going to used their own money to reimburse their customers.

If any of you guys are a victim, it's better to follow the official twitter account of Bitmart's CEO Sheldon Xia.

https://twitter.com/sheldonbitmart

[Accardo]

Their Private Key got hacked. Exchanges are not safe considering the fact that all the funds deposited by customers to their address is stored on a hot wallet. So, it's very simple to recover all the funds once the private key is accessed. The company need to restructure the way they secure funds. I think paper wallet would be the best wallet for exchanges, and traders should be cautious about keeping huge funds on exchanges.

[sunsilk]

I received an email from bitemark on the 5th of December informing me about an attack on its got wallet which is hosted in two blockchains Bianca smart chain and Ethereum blockchain. As a result of that a total of $200 million worth of assets ranging from Bitcoin, baby don't, and some other coin. The news of the reimbursement came as a great relief to victims.

That's good news for the affected users of bitmart. Next time guys, don't put most of your funds in any exchange. Even they are the most reputable and secured exchange, through updates, the infiltrators can still attack them as much as they want until they're penetrated by these hackers.

If they have insurance, then the insurance company would have come down and taken a look at how they do business, security practices, and so on.
Then the insurance company, goes back and comes up with an amount per month / quarter / year to cover any loss that might occur. And if one does they investigate and pay.
Does not matter what business that we are talking about. Be it an exchange or anything else.

So if they did have insurance, they the way they operated WAS insurable. And they were operating that way, because if they are getting money you can be sure their insurance investigated before they wrote a check that big.

If they did not have insurance and are covering the loss out of pocket, how much profit are they making to cover $200 million?

-Dave

I only know Binance as having insurance (SAFU), but this bitmart exchange, honestly, just heard this exchange because of this recent hack. Also, if the OP can give a link so people can read about this recent hack.

https://cointelegraph.com/news/bitmart-pledges-to-reimburse-hack-victims-as-crypto-community-voices-support

From the article, it is stated that the exchange will shoulder the losses. So don't know how they will cover those multi-million dollar losses. For their users, check their fees later on.

The explanation about insurance is already enough for them to cover the loss for their customers. So if it's a fact that they're insured before the hack has happened then there's no problem for them reimbursing it and there's no need to question how they'll refund the affected funds. Because the most important is that the funds will be sent back to their customers who lost funds with them.

[nelson4lov]

Not your keys, not your bitcoin.

There’s a reason this phrase became so commonly used in cryptoland. Too many people get comfortable leaving their assets on third party exchanges. Why leave your money in anybody else’s control?
You should only transfer coins to online platforms when you plan to sell them. Do not leave your money in anybody else’s control.

There are too many stories of people losing their money, it’s sad.

That's the problem. Every day, I see a CEX get hacked or one of these so-called decentralized or DeFi platform gets hacked and lose user's money. As someone who has gotten hacked myself from trust wallet, I'd say we still have a long way to go. Even most of the non-custodial wallets are as flawed as the hot wallet of exchanges being hacked almost every day.

Most people who lose money on exchanges are traders who have to keep an active balance on this exchanges.

[Vaskiy]

Not your keys, not your bitcoin.

There’s a reason this phrase became so commonly used in cryptoland. Too many people get comfortable leaving their assets on third party exchanges. Why leave your money in anybody else’s control?
You should only transfer coins to online platforms when you plan to sell them. Do not leave your money in anybody else’s control.

There are too many stories of people losing their money, it’s sad.

That's the problem. Every day, I see a CEX get hacked or one of these so-called decentralized or DeFi platform gets hacked and lose user's money. As someone who has gotten hacked myself from trust wallet, I'd say we still have a long way to go. Even most of the non-custodial wallets are as flawed as the hot wallet of exchanges being hacked almost every day.

Most people who lose money on exchanges are traders who have to keep an active balance on this exchanges.

Traders are the one who loss, because of holding funds on the exchanges. It is also a difficult thing to take back the funds and deposit everytime we do trading. Possibly the traders who do with a large capital can follow it. With the common people with small capital it seems to be more expensive. Because what he/she earns out of a trade will go for transaction fee.

[Doell]

bad news/good news ? Bitmart security can be hacked?  is it possible to be trusted again in the future? such incidents hit a hard on investors views security in the global crypto market ,I fear there will be a drastic downturn scenario ! how can we see a good future if there is always news because of hacking ? ^{fortunately I always follow the words of the master in here "don't leave your assets on the exchange for a long time"}

[GreatArkansas]

I received an email from bitemark on the 5th of December informing me about an attack on its got wallet which is hosted in two blockchains Bianca smart chain and Ethereum blockchain. As a result of that a total of $200 million worth of assets ranging from Bitcoin, baby don't, and some other coin. The news of the reimbursement came as a great relief to victims.

Very careful, don't get too comfortable now, it's still not 100% that they will reimburse it. To be honest, there are a lot of cases of exchanges closing and their customers didn't get any reimbursement.
I am no hater here, but if they are true with their words and that is good news.
But as long as they are operating, this is good news for everyone, as long as they will not file for bankruptcy and will decide to stop their operating, this $200 million worth of assets for reimbursement is still possible.

[Wiwo]

I received an email from bitemark on the 5th of December informing me about an attack on its got wallet which is hosted in two blockchains Bianca smart chain and Ethereum blockchain. As a result of that a total of $200 million worth of assets ranging from Bitcoin, baby don't, and some other coin. The news of the reimbursement came as a great relief to victims.

they will reimburse that money? I seem to see a strange scenario here, they are like doing a drama to attract the sympathy of others that their exchange is a responsible exchange.

if you have a large enough capital do not trade on exchanges that do not have a good reputation, you better trade your btc on DEX.

They are not acting like any dreamer mate, most of those exchanges such as Binance have what is called safu funds these funds are mainly for hack accidents, but your advice is correct not to keep money on exchange but what if the funds are for trading and other activities you need the exchange for?

[bbc.reporter]

Ascendex was also hacked and an estimated total of $78 million was stolen in Ethereum, BNB and Polygon tokens. It appears that none of these exchanges in the cryptospace has escaped from the problem of being hacked hehe. Binance, Kucoin, OKex, almost every exchange had millions of dollars in coins stolen from them. I reckon the only exchange that has not yet been hacked is FTX.

[Dave1]

Ascendex was also hacked and an estimated total of $78 million was stolen in Ethereum, BNB and Polygon tokens. It appears that none of these exchanges in the cryptospace has escaped from the problem of being hacked hehe. Binance, Kucoin, OKex, almost every exchange had millions of dollars in coins stolen from them. I reckon the only exchange that has not yet been hacked is FTX.

Everyone is really vulnerable in this crypto space, hackers are everywhere and one step of the game.

It this is totally true, then good for those customers who lost their coins because they are going to be reimburse and Bitmart has also this sort of SAFU.

And it's interesting that they have a deep pocket and obviously they have already a ton of profits from crypto traders since their inception.

[pooya87]

bad news/good news ? Bitmart security can be hacked?  is it possible to be trusted again in the future? such incidents hit a hard on investors views security in the global crypto market ,I fear there will be a drastic downturn scenario ! how can we see a good future if there is always news because of hacking ? ^{fortunately I always follow the words of the master in here "don't leave your assets on the exchange for a long time"}

Well for starters bitcoin is not meant to be used as a trading tool on centralized exchanges! It is a currency that you control and use all on your own without needing a third party. That means no matter how many times centralized shitservices get hacked, it won't affect bitcoin.
Besides this is not the first hack, not even the biggest one and it certainly won't be the last. None of them have changed anything apart from a small percentage of people who use  exchanges becoming more careful!