RIYADH: Crypto exchange BitMart has experienced a security breach that has led to hackers withdrawing around $150 million in cryptocurrency, Bloomberg reported.
Blockchain security firm PeckShield estimates the total loss could run as high as $200 million.
Last week, BitMart closed a Series B funding round led by New York-based private equity firm Alexander Capital Ventures that valued the crypto exchange at more than $300 million.
BitMart will use its own funding to compensate users affected by this hack, according to CEO Sheldon Xia's tweet.
“No user assets will be harmed,” he tweeted, adding the company expects to resume deposit and withdrawal functions on Tuesday.
Also last week, crypto lender Celsius network, which has raised funds from major investors including Canadian pension fund Caisse de Dépôt et Placement du Québec, confirmed that it lost funds as a result of the hack of BadgerDAO, a decentralized finance platform.
Mining
Authorities in Russia and Ukraine have shut down a number of farms involved in the illegal mining of cryptocurrencies allegedly powered by stolen electricity.
"An audit revealed an unauthorized connection to the power grid, theft of electricity and illegal seizure of land for the operation of equipment designed to perform cryptographic calculations related to the mining of digital currencies," Ekaterina Korotkova from the Moscow Interregional Transport Prosecutor’s Office said.
The cost of illegally consumed electricity used to operate mining equipment exceeds 500,000 rubles per day ($7,000), Korotkova explained.
The authorities have filed a criminal case and intend to prosecute the owners of the crypto-mining facility.
Trading
Bitcoin, the leading cryptocurrency in trading internationally, traded higher on Tuesday, rising by 5.39 percent to $51,010 at 4:43 p.m Riyadh time.
Ether, the second most traded cryptocurrency, traded at $4,355, up 7.47 percent, according to data from Coindesk.
