Singapore’s Phemex crypto exchange has suspended all withdrawals temporarily following an alleged $37 million hack targeting one of their hot wallets.
The exchange made this announcement on Jan. 23 to accommodate an urgent inspection as well as to improve the security of its wallet. Phemex promised users that they would be able to withdraw their funds again soon. They apologized for any inconvenience.
Cyvers is a firm that specializes in blockchain security. They were the first to detect this breach. The firm initially flagged the unusual transfers of $29 million from Phemex’s hot wallets across various blockchains, including Ethereum, Binance Smart Chain, Polygon, Optimism, Base, and Arbitrum.
Later, Cyvers confirmed that Tron and Bitcoin-based assets had also been affected. This brought the total loss to around $37 million. To avoid detection, the attackers began to swap their stolen tokens for Ethereum.
Meir Dolev, Co-Founder and CTO of Cyvers shared additional details with CryptoSlate, revealing over 125 suspicious transactions involving fund transfers from Phemex’s hot wallets to new wallets on various networks.
According to reports, the affected stablecoins and tokens have been swapped between Ethereum, Binance Smart Chain Avalanche and Solana.
Compensation Plan
Phemex CEO Federico Variola reassured users that the exchange’s cold wallets, which house the majority of funds, remain secure and verifiable.
The platform will continue to provide trading services and updates on the progress of the investigation.
Further details are expected in the near future.
As per the exchange
“Phemex and the development team apologize for the disruption. Our mission to provide a seamless and trusted trading environment remains firm. We are working on a compensation plan, which will be announced soon. Thank you for your understanding and continued support.”
Phemex, one of Singapore’s leading cryptocurrency exchange platforms, is a leader in the industry. CoinMarketCap data shows it had trading volume of over $170 Million in the past day and $442,000,000 in user assets.
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