Wallets linked to the breach of Brazilian crypto exchange Mercado Bitcoin have converted more than $10.55 million in stolen tokens into Ether, according to on-chain activity observed between November 3 and 4. The attackers swapped over 136 different altcoins for ETH, consolidating a diverse haul into a single, highly liquid asset.
Conversion details
The total value converted is estimated between approximately $10.55 million and $11.9 million. The move into ETH serves a practical purpose: many of the stolen tokens are small-cap assets that are difficult to sell without affecting their prices or attracting attention. Ether, by contrast, has deep liquidity and, unlike centrally issued stablecoins, cannot be frozen by an issuer.
The attackers also attempted to bridge roughly $650,000 to Bitcoin, but that transfer appears to have stalled and has been described as a failed attempt.
How the breach unfolded
The attack occurred on November 2, 2026, when funds were drained from Mercado Bitcoin’s hot wallets and customer deposit addresses across more than 10 blockchains. The incident has been characterized as a signing-based attack, in which an attacker gains the ability to authorize transactions.
Major fund movements were observed between 06:19 and 06:53 UTC, with outflows continuing for several hours afterward. Mercado Bitcoin’s preliminary figures put losses at around $38 million, while independent analyses suggest the total could be as high as $49 million. The exchange is expected to narrow that gap as it completes its accounting.
Stablecoin issuers Tether and Circle were among those that froze more than $11 million in stablecoins tied to the incident. That freeze helps explain the pivot to ETH, as stolen USDT and USDC can be locked by their issuers, whereas Ether has no such off switch.
Exchange response
Mercado Bitcoin has committed to refunding affected users and stated that no customer data was compromised in the breach.
What to watch
The immediate question is how much of the stolen funds can still be recovered. With over $11 million in stablecoins frozen and a $650,000 Bitcoin bridge apparently stuck, some portion of the haul is effectively out of the attacker’s reach. The ETH already swapped is a different matter.
Key developments to monitor include Mercado Bitcoin’s final loss tally, the mechanics and timeline of its refund program, and whether the swapped ETH begins moving through new wallets. The difference between the $38 million and $49 million estimates will also matter, as it determines the size of the hole the exchange has promised to fill.
