Brazil’s largest cryptocurrency exchange, Mercado Bitcoin, has suspended all deposits and withdrawals after confirming a significant security breach that resulted in estimated losses between $40 million and $46 million. The exchange disclosed the incident on Monday, taking immediate action to freeze customer fund movements while it investigates the attack.
The security incident prompted Mercado Bitcoin to pause both deposits and withdrawals across its platform, according to multiple reports. While the exchange has not publicly disclosed the exact amount stolen, estimates from industry sources place the figure at approximately $40 million Bitcoin Magazine, while other outlets cite losses closer to $46 million The Block Cointelegraph.
In its public communications, Mercado Bitcoin has maintained that customer funds and personal data remain safe, despite the substantial breach. The exchange has not provided a timeline for when normal operations will resume, leaving users unable to access their assets during the investigation period Bitcoin Magazine.
On-chain analysis has revealed movement of funds following the hack. Blockchain data shows transfers occurring from Mercado Bitcoin wallets after the security incident was detected, suggesting the attackers successfully extracted cryptocurrency from the exchange’s infrastructure before the withdrawal freeze took effect Cointelegraph.
Stablecoin issuer Tether has taken responsive action by freezing more than 4.5 million USDT connected to the attack. This intervention represents one of the measures taken to prevent further movement of stolen assets and potentially aid in recovery efforts Decrypt.
The incident marks one of the most significant security breaches affecting a Latin American cryptocurrency exchange in recent years. Mercado Bitcoin’s status as Brazil’s largest crypto platform amplifies the impact of the suspension, affecting a substantial portion of the country’s digital asset users who now face uncertainty regarding access to their holdings.
The exchange’s decision to halt all fund movements rather than maintain partial functionality reflects the severity of the breach and the need for comprehensive security assessment before services can safely resume. The lack of disclosed timeline for restoration has left customers awaiting further communication from the platform regarding when deposit and withdrawal capabilities will be reinstated.