Mercado Bitcoin to resume cash withdrawals after $49M hack

Crypto exchange Mercado Bitcoin will resume deposits and withdrawals in Brazilian reais via Pix, the country's instant payment system, next week, a company representative told Cointelegraph. The restart will come more than 15 days after an attack drained an estimated $49 million from wallets linked to the exchange.

Customers will only be able to withdraw funds to accounts in their own name. Mercado Bitcoin will also credit customers' accounts with proceeds from the settlement of fixed income products. Crypto deposits and withdrawals remain suspended, with no date set for their return.

Mercado Bitcoin, one of Brazil's largest crypto exchanges, began restoring access on Monday, a week after the attack, by allowing customers to view their accounts in read-only mode. Customers who regain access are directed to a page detailing the exchange's security measures and regular audits since 2018, with a link to a separate account of the incident.

Fabricio Tota, Mercado Bitcoin's vice president of new business, outlined the next phase in a recent video. The exchange has yet to publish a rollout schedule on its website.

"The resumption will proceed gradually, and the rollout of additional services will be communicated to clients in advance through MB's official channels," the representative said.

The Nov. 2 attack on Mercado Bitcoin came four days after hackers stole about $6.3 billion in crypto from Binance's hot wallets in a separate breach. The FBI attributed the Binance theft to North Korean hackers. The crypto exchange said it would cover the losses using its emergency fund and corporate treasury.