BitMart Founder Admits Security Staffing Shortfall After Breach

BitMart founder Sheldon Xia confirmed that the cryptocurrency exchange operates with a reduced security team. The statement followed the identification of suspicious transfers that may be connected to the recent attack against the Brazilian exchange Mercado Bitcoin.

Data from the analysis firm Bitquery reveals the movement of approximately 391,000 dollars in wallets associated with BitMart. Tracking indicates that these funds were directed to the same digital address involved in the 46 million dollar hack suffered by Mercado Bitcoin on November 2.

Xia justified the operational fragility by citing difficulties in retaining technical talent. The executive mentioned that threats against employees and retaliation from former staff members complicated the maintenance of the platform's core systems during the restructuring process.

The exchange has been navigating a period of uncertainty since announcing the closure of its activities. The company plans to cease operations in January 2027 and has presented recovery proposals for users that include the distribution of liquid assets and tokens linked to future recoveries.

The unstable environment at BitMart is worsened by reports of delayed withdrawals and frozen accounts in recent months. Platform management is now seeking judicial approval for its restructuring plans, which are expected to take place between December and January.