Phemex witness “suspicious” outflow of $29 Mln, halts withdrawals

Share IT

Key Takeaways

  • In response to the hack, the exchange has halted withdrawals.
  • The exchange noted that its cold wallets remain safe and can be checked by everyone else

Leading Singapore-based crypto exchange Phemex is currently investigating a hack that has led to one of its hot wallets being drained for around $29 million worth of crypto

In response to the hack, the exchange has halted withdrawals. “To ensure security, withdrawals have been temporarily suspended while we conduct an emergency inspection and strengthen wallet services.”

” Federico Variola, CEO of Phemex, took to X(Formerly Twitter) to assure users that despite the suspicious outflows from hot wallets, the firm’s “cold wallets remain safe and can be checked by everyone else”

As per reports, Phemex witnessed over $29 million worth of crypto transfers across multiple blockchains including BNB, Polygon, Arbitrum and Base.

According to blockchain analytics firm Cyvers which brought the drain to the limelight, the addresses have already begun swapping assets to $ETH.

Despite the suspicious outflows, the exchange’s cold wallets remain safe and can be checked by everyone else,” Federico Variola, CEO of Phemex, said.

“As we look into a report on one of our hot wallets rest assured our cold wallets remain safe and can be checked by everyone here, will post more updates shortly,” Phemex CEO Federico Variola wrote on X.

Cyvers’ co-founder and chief technology officer(CTO), Meir Dolev, noted that 125 suspicious transactions were recorded across 11 blockchains. He added that some of the tokens and stablecoins were already swapped to avoid freezing.

Crypto hacks and scams have become increasingly common in recent years. As per the latest report by blockchain analytics firm Chainalysis, stolen crypto funds surged by approximately 21.07% year-over-year (YoY) to reach a staggering volume of $2.2 billion. Further, the year 2024 saw the number of individual hacking incidents rising from 282 incidents in 2023 to 303 incidents.

Share IT
Saniya Raahath
Saniya Raahath

Get Daily Updates

Crypto News, NFTs and Market Updates

Can’t find what you’re looking for? Type below and hit enter!