Cryptocurrency exchange M2, based in Abu Dhabi, revealed on Nov. 1 that it had ‘resolved’ a significant security incident in which $13.7 million was lost. After the swift response to the hack, which had customers worried that their funds were missing, the exchange, co-founded by Bijan Alizadeh Fard and Stefan Kimmel, assured that funds are working as usual.
M2 announced in a blog that it was taking ‘full responsibility for any potential losses’ and would do what it could to protect customers’ assets. The exchange says all services and additional controls are now fully operational, but details of the breach are still unknown.
M2’s Swift Response Highlights Ongoing Security Challenges for Crypto Exchanges
According to data from blockchain investigator ZachXBT, the incident on October 31 involved unauthorized access to assets in Bitcoin, Ethereum, and Solana. Following the hack, M2 disclosed it is actively cooperating with legal and regulatory authorities to address the matter and prevent future incidents.
This is a crucial time for M2, which launched its services just 11 months ago under strict regulatory oversight from the Financial Services Regulatory Authority. With that in mind, the company’s quick action to get the funds back and security measures reinforced comes amid industry growth and challenges across crypto exchanges as it tunes into security challenges in a fast-growing arena.
Earlier this year, the crypto community paid close attention to the M2, which has also been praised. Canadian businessman Kevin O’Leary endorsed the platform, calling it ‘exactly what this industry has been looking for.’
