Phemex, the Singapore-based cryptocurrency exchange, has informed its users that it is investigating a potential hack on its hot wallet. The exchange has decided to conduct an emergency inspection to fortify its wallet services. This is after crypto tokens valued at $29 million were allegedly lost to hackers.
Phemex responds to hot wallet breach
In an X post written to users, Phemex said it has temporarily suspended withdrawals until after the investigations are concluded. They, however, apologized for the challenges and inconvenience the suspension has caused, promising to restore it soon.
Notably, Cyvers, a crypto-security firm, sounded the alarm of multiple suspicious transactions from the Phemex hot wallet. These transactions occurred across multiple blockchains with the malicious swapping of the funds for Ethereum (ETH).
However, in a separate post on X, Federico Variola, Phemex CEO, announced that preliminary reports from the exchange’s hot wallet show that cold wallets remain safe. Variola also boosted users’ confidence by asking anyone willing to confirm via a link he shared.
Interestingly, in the original post by Phemex, the exchange is working out a compensation plan and said it will notify its users as soon as it is perfected.
The exchange assured that other business operations were fully functional and trading services continued seamlessly, as usual.
Security concerns persist in crypto space
Malicious actors are known to attack crypto exchanges, resulting in huge user losses. These scammers employ different methods to target unsuspecting victims to steal their funds.
In a recent incident reported by U.Today, a user lost about $35 million after becoming a victim of a phishing attack by scammers. The malicious actors took advantage of a new feature, the “permit” option, with Ethereum Improvement Proposal (EIP) 2612.
Experts say the current attack on Phemex hot wallets reiterates the importance of digital security in the cryptocurrency market. It also reminds crypto users to stay vigilant to protect their funds online, as Charles Hoskinson recently stressed
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