Tag Archive for: Victims

Five weeks after the $200 million BitMart hack, many victims haven’t been reimbursed

In a nutshell: Most people are aware of the inherent risks that come with cryptocurrency. The dangers were illustrated yet again when exchange BitMart suffered a hack last month that saw $200 million worth of digital assets stolen. The company said it would reimburse all those impacted, but victims are still waiting for their money back five weeks later.

On December 4, 2021, BitMart announced that it had identified a large-scale security breach resulting from someone using a stolen private key to access two of its internet-connected hot wallets. The company assured impacted users that it would use its own money to compensate them.

But a new CNBC report reveals that some of those who lost a substantial amount of money five weeks ago have yet to see anything returned. Many of the victims lost SafeMoon tokens—more than 45 were stolen—including a Toronto-based Iranian refugee who had $53,000 worth of the coin stored in his BitMart wallet, $40,000 of which came from a loan that he has to pay back with 4% interest. He says the experience has left him close to suicide.

Another user lost $30,000 that came from himself, his mother, and his mother-in-law. And a Kansas-based investor who lost $35,000 says that he and 6,800 other investors are considering filing a class-action lawsuit against BitMart if the situation isn’t remedied in the next week.

Even if BitMart does pay everyone back by repurchasing the lost tokens, it could do so at their current prices, which in some cases are a lot higher. Many are also asking why the company hasn’t gone through insurance to reimburse the funds.

BitMart has reportedly been evasive when answering questions about returning the stolen funds, leading to a #WenBitMart Twitter campaign to draw attention to the situation.


BitMart $200 million crypto hack victims are still waiting for refunds

More than a month after a $200 million hack of the popular cryptocurrency exchange BitMart, crypto hack victims are still waiting for refunds. According to sources, BitMart promised a full reimbursement to the victims of the platform-wide $200 million hack.

Crypto hack victims are still waiting for refunds

Crypto hack victims are still waiting for refunds

Image Source: 5 Dariya News

According to CNBC, BitMart offered victims of the $200 million platform-wide attack a complete refund, although some users have yet to get their refunds. On December 4th, hackers obtained access to one of BitMart’s hot wallets, which are crypto wallets that are connected to the internet, and stole a variety of tokens.

BitMart announced shortly after the incident that it will “cover the problem and pay affected users” with its own funds. However, according to CNBC, a lot of people who were dissatisfied with the service have yet to receive their money back.

“No user assets will be harmed. We are now doing our best to retrieve security set-ups and our operation. We need time to make proper arrangements and your kind understanding during this period will be highly appreciated,” the platform stated.

BitMart announced it will compensate victims of the large-scale security breach, which is attributed to the theft of a private key.” Many BitMart customers say they haven’t received any form of reimbursement,” the report said on Sunday.

An Iranian exile told CNBC that he owned $53,000 in SafeMoon on BitMart, with $40,000 coming from a loan. If nothing is done to correct the situation, a Kansas-based investor warned the publication that he and 6,800 other investors may file a class-action lawsuit against BitMart.

PeckShield, a blockchain security firm, reported that SafeMoon was the most severely affected token in the BitMart hack. The #WenBitMart hashtag has been used by SafeMoon users to ask for a refund on Twitter, according to CNBC.

This may be the only way customers feel they can draw attention to the problem, as CNBC says that when users contact BitMart to inquire about the status of their missing coins, they are met with ambiguous…


Victims complain they haven’t been paid

Victims of the $200 million BitMart hack say that five weeks have passed since the crypto exchange vowed to return their money, but many still haven’t seen a dime.

“I’m not one to bitch and moan a lot,” said Paul DeLong, a business owner in Austin. “BitMart, from a communication perspective, they said that they were going to give us more updates. We have not received any updates at all.”

DeLong says he has reached out to the exchange multiple times, and each time, he’s received a canned response from a bot to inform him that BitMart and their attorneys are “working on it.”

In early December, BitMart wrote in an official statement that it would use its own money to reimburse victims of the large-scale security breach, which the exchange blamed on a stolen private key.

But users are getting restless waiting for BitMart to make good on its promise.

CNBC spoke to multiple BitMart users who were targets of the attack, some of whom face total financial ruin if their funds aren’t retrieved.

“Whether it’s $20, $500, $10,000, it doesn’t matter, just communicate back to us, and let us know,” said DeLong.

Many of the victims lost a particular token known as safemoon, which is a cryptocurrency token built on the Binance Smart Chain blockchain. The coin saw a massive run-up in the second quarter of 2021 after a slew of celebrity endorsements from the likes of rapper Lil Yachty and YouTuber Jake Paul.

CNBC reached out to ask whether BitMart still planned to make good on its promise to reimburse victims. The email address of BitMart CEO Sheldon Xia, which he lists on his unverified Twitter profile, bounced back, just as it did when CNBC first reached out to Xia in early December.

A spokesperson replied, “We will support all user withdrawals. We’re also talking to multiple project teams to confirm the most reasonable solutions such as token swaps. Any further updates will be announced on our official website.” The company did not respond to more detailed questions.

Victims plead for transparency

CNBC talked to more than a dozen BitMart users personally affected by the breach. One common theme across many of these conversations was a desire for transparency. The shared feeling was that bad news was…


As 3G dies, old phones aren’t the only victims

When millions of obsolete mobile phones stop working next year, they’ll have plenty of company.

In 2022, the nation’s wireless carriers will shut down their 3G data networks to make room for better 4G and 5G services. The transition will affect not only phones, but also countless other devices that rely on 3G data links — home security systems, medical alert devices for senior citizens, the driver assistance systems inside many cars, and even the ankle bracelets used by law enforcement agencies to keep track of parolees.

Ben Coleman, a school teacher in Fall River, has already paid a high price for the impending death of 3G service. About a year ago, Coleman received an e-mail from BMW about his 2014 i3 electric car. The message warned that “the 3G was going to stop working and that they were not going to replace the module,” Coleman said.

“The i3 had limited range, so the only way I could make it to work in the winter is if I pre-heated the battery,” Coleman said. “The only way to schedule that is via a 3G cellular connection.” Without an Internet connection, the car would be useless to him. So in May, Coleman sold his fully paid-for i3 and now makes monthly payments on a new Chevrolet Bolt.

At least Coleman knew he had a problem. But many consumers are unaware that their gadgets could stop working sometime next year — in some cases, as soon as February 22. That’s when AT&T, a major provider of network services for devices other than phones, plans to switch off its 3G system once and for all.

“There will be hundreds of thousands of seniors and millions of homes and businesses without security and fire protection, period, on February 23rd,” said Daniel Oppenheim, president of the Medical Alert Monitoring Association.

Oppenheim’s trade group, as well as a consortium of home security system makers and an organization of major automakers have all asked the Federal Communications Commission to delay AT&T’s 3G shutdown until December 31, 2022, the same date when Verizon will switch off its 3G service. They say this will give their industries enough time to complete the transition to 4G devices.

The nation’s third major wireless company, T-Mobile, has a much…