BitMart founder Sheldon Xia confirms minor hack amid court-supervised wind-down
In brief
- BitMart reported a minor hacking incident on November 2, 2026.
- $391,000 was drained across Base, Arbitrum and Optimism, Crypto Briefing reported, citing research.
- Founder Sheldon Xia said the security team was understaffed during the restructuring.
- On-chain data reportedly ties the breach to a $48.6 million Mercado Bitcoin attack; the link is unconfirmed.
- BitMart halted trading in August and is pursuing a court-supervised repayment plan.
What was taken
Crypto Briefing, citing research findings, reported that the attack drained $391,000 from BitMart wallets across three blockchain networks: Base, Arbitrum and Optimism. All three are Ethereum layer-2 networks. That dollar figure comes from the research cited by Crypto Briefing (it isn't a number BitMart published).
Xia said the breach triggered an immediate investigation aimed at strengthening the exchange's defenses. He also admitted something that's harder to brush off. By his account, the security team had been understaffed during the restructuring process.
That's the uncomfortable part.
A possible link to Mercado Bitcoin
On-chain analyses reportedly tie the BitMart incident to a larger attack on Mercado Bitcoin, where total losses came to around $48.6 million, according to Crypto Briefing. The research indicated attackers targeted BitMart wallets about 53 minutes before they hit Mercado Bitcoin. It's worth being careful here, though. The connection was drawn from on-chain data, not from formally confirmed attribution.
Restructuring under court supervision
BitMart announced its wind-down on July 26, 2026 and halted all trading by August 26. Since then it's been working through a court-supervised restructuring, and the goal is a repayment plan that settles what the exchange owes users. Users have lodged complaints over withdrawal issues along the way.
BitMart has been hacked before. On December 4, 2021, hackers drained the exchange's hot wallets on Ethereum and BNB Smart Chain, with estimated losses of $150 million to $196 million. Research findings cited by Crypto Briefing indicate the current restructuring is partly attributed to that incident, and restructuring documents note a projected shortfall of $319.5 million based on 2021 pricing.
Next to those numbers, $391,000 is small. Still, this is a fresh breach at an exchange whose own founder says its security team was short-staffed, and it landed while BitMart is still trying to work out how it'll pay users back.
Frequently asked questions
How much was stolen in the November 2026 BitMart hack?
Crypto Briefing, citing research findings, reported that the attack drained $391,000 from BitMart wallets on Base, Arbitrum and Optimism, which are all Ethereum layer-2 networks. Founder Sheldon Xia described it as a small-scale incident involving a limited amount of stolen funds.
Is the BitMart hack linked to the Mercado Bitcoin attack?
On-chain analyses reportedly link the two. Research indicated attackers targeted BitMart wallets about 53 minutes before hitting Mercado Bitcoin, where losses came to around $48.6 million. The link was drawn from on-chain data and hasn't been formally confirmed.
Why is BitMart restructuring?
BitMart announced its wind-down on July 26, 2026, and halted trading by August 26. It's working through a court-supervised restructuring aimed at a repayment plan for users. Research cited by Crypto Briefing partly attributes the restructuring to a 2021 hack, and restructuring documents note a projected $319.5 million shortfall based on 2021 pricing.
