BitMart suspends withdrawals following hack

TechCentral.ie
Monday, December 6, 2021

• 4.7k
• 52
• 52
• 52
• 28
• More
• 52
• 55

BitMart is scheduled to resume withdrawal functions on Tuesday and will use its “own funding to cover the incident and compensate affected users”.

However, Ilia Kolochenko, founder of ImmuniWeb and a member of the Europol Data Protection Experts Network, said that it’s unlikely that the victims of the breach will get back the entirety of the stolen funds.

“Cyber insurance will unlikely cover such losses. The victimised customers of Bitmart may try to recover their losses in court, but their chances to prevail are pretty low, while the eventual chance to get all their money back borders on zero,” he told IT Pro.

Kolochenko described such investigations as “costly and complex”, blaming the issue on the “turbulent and competitive” cryptocurrency market, “where few players can afford adequate investment into their cybersecurity programmes” and data protection isn’t the first priority.

He called on regulators to “start treating crypto businesses as financial institutions by imposing much stricter data protection rules”.

“Otherwise we will see many more hacks like this one,” he added. Read Full Article