Phemex is investigating a hack that has siphoned millions from one of its hot wallets. The Singapore-based exchange has quickly suspended withdrawals to secure users’ funds.
The hack was first noticed by crypto security firm Cyvers, who reported unusual transactions from the Phemex hot wallet.
Lookonchain also confirmed the incident, revealing that assets worth around $31 million were stolen.
“Phemex was hacked, and ~$31M assets were flowed out, including: 3.48M $USDC 3.42M $USDT 841 $ETH($2.7M) 110,701 $LINK($2.69M) 142B $PEPE($2.12M) 1.19M $FET($1.45M) 29,509 $AVAX($1.04M)”
Phemex CEO Federico Variola has talked about the situation on X, reassuring users that, “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. More updates will be posted shortly.”
The suspension of withdrawal is only a precaution while the company is looking into the leak in its security. However, trading services and other functions continue to operate as usual. Phemex has made it very clear that the breach is minimal and users can trade without issues.
Phemex has long built a strong name for itself over the years as a transparent and secure exchange, also as the first to publish proof-of-reserves and proof-of-solvency.
The exchange said it’s correctly working on a compensation plan for the users that are affected. More information about this will be announced soon.
In the meantime, users can still verify the status of Phemex’s cold wallets through the platform’s proof-of-reserves. The company said it will continue to update the public as the investigation progresses.
Also Read: WazirX Hack Update: Singapore Court approves restructuring plan
