Mercado Bitcoin Halts Withdrawals After $40 Million Drain
Mercado Bitcoin, Brazil's largest crypto exchange, suspended deposits and withdrawals on November 1, 2026, following a security incident that drained an estimated $40 million from its hot wallets across ten blockchains. Although the exchange states that no customer losses occurred and it will absorb the full loss, the incident underscores ongoing security risks within the ecosystem. Tether responded swiftly, freezing over 4.5 million USDT connected to the incident.
Mercado Bitcoin suspended deposits and withdrawals on November 1, 2026, after a hack.
An estimated $40 million was drained from hot wallets across ten blockchains.
Tether froze over 4.5 million USDT connected to the incident.
The attacker still holds roughly $46 million in crypto assets.
Story
On November 1, 2026, Mercado Bitcoin, Brazil's largest crypto exchange, was forced to suspend deposits and withdrawals. The reason was a security incident that drained an estimated $40 million from its hot wallets across at least ten blockchains. Blockchain security firms like Hypernative and Arkham Intelligence estimated the preliminary loss at over $40 million and roughly $46 million, respectively. The exchange assured that customers suffered no losses and no data leaked, stating it would absorb the full loss. Despite this assurance, the incident highlights the persistent threat of hacks and the importance of robust security measures for crypto exchanges. A notable aspect of the response was Tether's swift action, freezing over 4.5 million USDT connected to the incident. The attacker reportedly transferred approximately $8 million in ETH to a new wallet and still holds around $46 million in crypto assets. This incident directly impacts liquidity for users of the affected exchange and highlights systemic risks across the broader crypto market.
Issue context
The crypto market is experiencing a downturn, with the total market capitalization decreasing by 3.17% over the last 24 hours to $2.6 trillion. Bitcoin and Ethereum are also seeing declines, while the Fear & Greed Index registers "Fear" at 26. Despite these price drops, funding rates for BTC, ETH, and SOL perpetual markets remain positive, suggesting that long positions are still paying shorts. This issue examines recent security incidents, macroeconomic influences, and regulatory developments shaping the market during this period of uncertainty.
Current market conditions show increased volatility and uncertainty. While Binance's fund flows are stabilizing, recent hacks serve as a reminder of ongoing security risks within the ecosystem. Pay attention to macroeconomic developments and regulatory changes, as these can continue to heavily influence market sentiment and liquidity. Your risk appetite should account for these factors.
Market pulse
ETH
$2.3K
-1.03% 24h / -3.04% 7d
Fear & Greed
26
Fear
BTC Funding
+0.0085%
20 perp markets · Open Interest $53.5B
BTC Open Interest
$53.5B
24h volume $60.6B · basis +0.014%
More from this issue
This story is part of the Biturai Market Brief and is for informational purposes only. No investment advice.