September 26, 2022

Volume XII, Number 269

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September 26, 2022

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FTC Investigating BitMart After $200M Crypto Theft!

BankInfoSecurity.com reported that “The U.S. Federal Trade Commission is investigating the operators of a cryptocurrency platform that lost $200 million of investor funds in one of the biggest crypto cyberattacks of 2021.”  The August 11, 2022 report entitled “FTC Probes BitMart After $200M Theft at Crypto Exchange” included these comments:

In December 2021, nearly $200 million was stolen from BitMart, blockchain analytics firm PeckShield estimated. PeckShield's assessment at the time showed that the company lost approximately $100 million in several cryptocurrencies on the Ethereum blockchain and another $96 million in coins on the Binance Smart Chain.

BitMart CEO Sheldon Xia said in a tweet that the company would use its own funding to cover losses for affected users, adding later that an internal investigation showed that the breach "was mainly caused by a stolen private key."

BitMart customers earlier this year said they had yet to receive reimbursements.

It will be interesting to see the results of the probe!

© 2022 Foley & Lardner LLPNational Law Review, Volume XII, Number 225
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About this Author

Peter Vogel, trial attorney, Foley Lardner
Partner

Peter Vogel is renowned as both a trial and transactional lawyer who deeply understands technology, science and intellectual property, and the opportunities and problems they pose for clients. Governments and administrative agencies, as well as major corporations and emerging businesses, rely on Peter to get right to the heart of an information technology or e-discovery dispute; he knows what to expect and how it will play out in the courtroom. This eliminates unproductive rabbit trails and reduces the cost of litigation for all parties. When negotiating agreements for...

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