BitMart founder confirms second exchange hack – Links to Mercado Bitcoin emerge - AMBCrypto

November has started with market volatility, with crypto security incidents adding to uncertainty. Following Binance's $6.3 billion hack, another large-scale breach has been confirmed by BitMart founder Sheldon Xia. Initial investigations suggest a potential link between this attack and the $38 million-$49 million exploit on Mercado Bitcoin that occurred within the same 24-hour period.

Funds Movement Raises Concerns

On-chain investigators are tracking the movement of stolen funds, with approximately $11.45 million worth of altcoins transferred between various wallets. This includes about $1.1 million in VIRTUAL sent to a new wallet, with potential sales occurring in batches of around $20,000. The attacker still holds roughly $1 million worth of VIRTUAL.

The Mercado Bitcoin hacker has moved to sell multiple altcoins including PEPE, AAVE, UNI, ONDO, and ENA, converting them into ETH. The attacker now possesses 7,988 ETH valued at approximately $18.19 million.

Market Vulnerability Increases

These hacks occur amid significant market uncertainty, with the Altcoin Season Index falling below its third lower low. Arkham Intelligence reports the hacker has moved 31 different altcoins to wallet 0x848 and sold them for about $316,000 in ETH, indicating a rotation out of altcoins and into Ethereum.

Broader Risks Emerge

Ethereum is currently trading above $2.3k with RSI in neutral territory, though Spot ETH ETFs have recorded seven consecutive days of net outflows. Recent ETH strength appears more connected to Bitcoin weakness than strong demand, with ETH dominance up nearly 2% this week.

With altcoins already struggling, consecutive lower lows, weak ETF flows, and rising macro uncertainty, the market faces potential liquidity squeeze. This increases the risk of a deeper altcoin crash if the hacker begins dumping their ETH holdings.