Some Bitmart customers are crying foul, after the company fails to respond to requests for updates following the December hack that saw $200M worth of assets depart from two of Bitmart’s hot wallets.
Bitmart customers speak out. After the December 2021 hack, victims are still awaiting further communications from the exchange regarding the refund of lost funds. Bitmart wrote in a statement that they would reimburse victims of the attack. Communicating with CEO via email led to the email bounce.
One individual from Toronto, an Iranian refugee, is on the verge of suicide. He invested $53K, $40K of which came from a loan, in safemoon tokens contained in a Bitmart wallet. He is a tow-truck driver who wanted to use cryptocurrencies to make a future in Canada. Another individual invested his own money plus $30K from his mother and mother-in-law. Not only did he lose money, but he is responsible for the funds of two other investors.
A Kansas Bitmart customer contacted 6,800 Safemoon token holders who are considering a class action lawsuit against Bitmart. Safemoon tokens were a large part of the more than 45 coins stolen during the hack. Some Bitmart users have reported refunds for saitama tokens. But the security moon holders were forced to guess. A group colloquially known as the Safemoon Army is continuing a campaign on Twitter to shame Bitmart for paying back victims.
How will Bitmart do this?
Bitmart supports token exchanges, but one user said they would lose money if they liquidate safemoon tokens to USDT, a stablecoin that tracks the U.S. Dollar. This is because he would incur a 10% fee for the liquidation, and safemoon tokens would be liquidated at a third of the price that the tokens trade at today.
In a discussion on Twitter Spaces, the exchange itself came under close scrutiny. Bitmart raised $ 13.7 million in a Series B funding round, resulting in a valuation of $ 300 million, leading some to wonder how it would pay back $ 200 million to ‘lost assets. Others have expressed concern that Bitmart has only stopped withdrawals since the incident, instead of stopping trading on the affected and unsecured tokens.
Nothing to worry about – Safemoon executive
A senior safemoon executive has 15% of his safemoon tokens on Bitmart and believes that Bitmart will come out on the right side of this saga. “We’ve come such a long way now that I believe that BitMart will keep their promise and do the right thing…Especially with the safemoon army, we have such a great support for what we’re trying to achieve that it wouldn’t die down. It won’t only add more fuel to the fire,” he said.
