Crypto exchange M2 'resolves' $13.7m incident after hack reports

Abu Dhabi-based cryptocurrency exchange M2 claims it has resolved a $13.7 million incident after allegedly falling victim to a hacker attack.

Cryptocurrency exchange M2, co-founded by Bijan Alizadeh Fard and Stefan Kimmel, has suffered a “cybersecurity incident involving $13.7 million,” which the exchange claims it has “swiftly responded to” on Oct. 31.

In a blog announcement on Nov. 1, the Abu Dhabi-based crypto trading platform reassured its customers that the situation “has been fully resolved and customer funds have been restored,” though it didn’t elaborate on the reason behind the incident.

“M2 has taken full responsibility for any potential losses, demonstrating our unwavering commitment to safeguarding our customers’ interests. All services are now fully operational with additional controls in place.”

M2

M2 pledges to cooperate with regulators

According to data from blockchain sleuth ZachXBT, bad actors somehow managed to pilfer assets in Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). The exchange claims it is “actively cooperating with relevant legal and regulatory authorities,” highlighting its efforts to ensure the matter is dealt with “thoroughly and appropriately.”

M2’s swift response underscores the challenges crypto exchanges are still facing in balancing rapid growth and stringent security. The incident occurred almost a year after M2 established operations in the Middle East, operating under the Financial Services Regulatory Authority’s oversight as a trading platform and custodian.

The attack marks a test for M2, which had previously gained attention in the crypto community. Shortly after its launch, Canadian businessman Kevin O’Leary publicly endorsed M2 in an X post, calling it “exactly what this industry has been searching for.”