M2 Exchange Hack

On October 31, 2024, M2, a cryptocurrency exchange based in Abu Dhabi, experienced a security breach that resulted in the theft of approximately $13.7 million in Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) from its hot wallets.

The incident was detected at 3:16 AM, and within just 16 minutes, M2 reported the situation as “resolved,” assuring users that all affected customer funds had been fully reimbursed. Despite the swift response and compensation, M2 has not disclosed critical details about the attack vector or the nature of the exploit.

No post-mortem analysis has been released, and the exchange has yet to outline any newly implemented security enhancements. M2, which launched in November 2023 and maintains a relatively modest 24-hour trading volume of around $45,000, reiterated its commitment to security and compliance, stating that it is cooperating with legal and regulatory authorities.

While the rapid reimbursement helped contain user fallout, the lack of transparency raises serious concerns about the exchange’s overall security posture. This breach contributes to the estimated $2 billion in crypto losses from hacks in 2024, underscoring the ongoing vulnerabilities in digital asset platforms and the critical need for robust security protocols, timely disclosures, and detailed post-incident reporting.