Crypto exchange M2 ‘resolves’ $13.7m incident after hack reports

Abu Dhabi-based cryptocurrency exchange M2 claims to have resolved a $13.7 million case after it allegedly fell victim to a hacker attack.

Cryptocurrency exchange M2, co-founded by Bijan Alizadeh Fard and Stefan Kimmel, suffered a “$13.7 million cybersecurity incident” on October 31, to which it claimed to have “responded quickly.”

In a blog post on Nov. 1, the Abu Dhabi-based crypto trading platform assured its customers that the situation had been “fully resolved and customer funds have been restored,” but did not elaborate on the reason behind the incident.

“M2 took full responsibility for any potential losses, demonstrating our unwavering commitment to protecting our customers’ interests. “Thanks to additional checks, all services are now fully operational.”

M2

M2 pledges to cooperate with regulators

According to data from blockchain detective ZachXBT, bad actors somehow managed to steal assets in Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). The exchange claims that it is “actively cooperating with the relevant legal and regulatory authorities”, underlining its efforts to ensure that the matter is addressed “fully and appropriately”.

M2’s rapid response underscores the challenges crypto exchanges still face in balancing rapid growth with tight security. The incident comes almost a year after M2 began operating in the Middle East and operated under the supervision of the Financial Services Regulatory Authority as a trading platform and custodian.

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