Mercado Bitcoin Halts Withdrawals After $40M Drained Across 10 Chains

Brazil’s Mercado Bitcoin, one of Latin America’s largest cryptocurrency exchanges, has suspended deposits and withdrawals after attackers drained approximately $40 million from its hot wallets across at least 10 different blockchain networks. The breach comes just days after the $6.3 billion Binance hack, underscoring a troubling rise in high-profile exchange exploits. Mercado Bitcoin has not yet disclosed the exact attack vector or whether user funds were insured, but the pause is intended to prevent further losses while it investigates. The incident highlights the persistent vulnerabilities in centralized exchange infrastructure, even as platforms tout improved security. For Brazilian crypto users, the freeze is a stark reminder of counterparty risk. The exchange says it will provide updates as its forensic analysis progresses, but no timeline for resuming withdrawals has been given. This event may accelerate regulatory scrutiny of crypto custodians in Brazil and beyond, as authorities weigh consumer protection against innovation.