Some Bitmart customers are crying foul after the December hack failed to respond to requests for updates, in which $200M worth of assets were siphoned off two of Bitmart’s hot wallets.
Bitmart customers are speaking out. After the December 2021 hack, the victims are still awaiting further communication from the exchange regarding reimbursement of the lost funds. Bitmart wrote in an official statement that they would reimburse the victims of the attack. Communications with the CEO via email have resulted in bounced emails.
An Iranian refugee from Toronto, a man on the verge of suicide. He invested $53K in Safemoon tokens contained in a Bitmart wallet, of which $40K came from loans. He is a tow-truck driver who wanted to use cryptocurrency to build a future in Canada. Another man invested his own money plus $30K from his mother-in-law and mother-in-law. Not only did he lose money, but he is responsible for the funds of two other investors.
A Bitmart customer in Kansas has contacted 6800 Safemoon token holders who are considering a class-action lawsuit against Bitmart. The Safemoon tokens hack accounted for a substantial portion of the more than 45 coins stolen. Some Bitmart users have reported reimbursement for Saitama tokens. But Safemoon kept the holders guessing. A group known as the Safemoon Army is running a Twitter campaign to shame Bitmart for paying back victims.
How will Bitmart do this?
Bitmart supports token exchanges, but one user said they will lose money if they liquidate the Safemoon token to USDT, a stablecoin that tracks the US dollar. This is because it will have to pay a 10% fee for the liquidation, and the Safemoon token will be liquidated at one-third of today’s token price.
In a Twitter Space discussion, the exchange itself was brought under scrutiny. Bitmart raised $13.7 million in a Series B funding round that resulted in a $300 million valuation, leaving some wondering how it would recover $200 million in lost assets. Others have expressed concern that Bitmart has only halted withdrawals since the incident, instead stopping trading on the affected and non-collateralized tokens.
Nothing to worry – Safemoon Executive
A senior Safemoon executive owns 15% of his Safemoon tokens on Bitmart and believes Bitmart will emerge on the right side of this saga. “We have come such a long way now that I believe Bitmart will keep its promise and do the right thing… Especially with Safemoon Army, we have such great support for what we are trying to achieve. That it will not die slowly. It will not only add more fuel to the fire,” he said.
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