Suspicious $37 million withdrawal tracked from cryptocurrency exchange Phemex by investigators.
In a shocking turn of events, the Phemex cryptocurrency trading platform suffered a significant security breach on January 23, 2025. The breach exposed a vulnerability in Phemex's hot wallet system, leading to the theft of approximately $85 million in cryptocurrencies across multiple blockchains.
The exact digital assets involved beyond Bitcoin (BTC) and Tron (TRX) have not been specified. Reports suggest that over $29 million in digital assets were transferred to suspicious addresses on various networks, including Binance Chain, Ethereum, Optimism, Polygon, Base, and Arbitrum.
Immediately following the breach, Phemex suspended deposits and withdrawals and launched an investigation in collaboration with third-party security experts and law enforcement. The platform has since implemented enhanced security measures and is gradually restoring withdrawal services for various cryptocurrencies and networks. Users have been advised to avoid using old deposit addresses.
The breach involved a sophisticated attack that compromised the hot wallets, with the initial estimate of the loss being lower but subsequently revised upwards. Large-scale crypto thefts like this are often attributed to hacking groups, though the specific threat actors in this case remain unclear.
Phemex apologises for the inconvenience caused and has temporarily suspended withdrawals for an emergency inspection and wallet service strengthening. The company is also preparing a compensation plan to be announced shortly. Trading services continue to function during this time.
It is worth noting that this incident follows a similar incident at BingX exchange in September 2022, where hackers caused approximately $43 million in damage. However, it remains unclear if any action has been taken by Phemex to address the suspicious transactions.
PeckShield and Cybers Alerts have reported multiple suspicious transactions on Phemex. A tweet was posted on January 23, 2025, by an account tagged @Phemex_official, mentioning a suspicious large fund outflow from Phemex hot wallets.
Despite the breach, funds in Phemex's "cold" wallets remain secure during the suspension. No specific timeframe for the restoration of withdrawals has been provided. The estimated total loss due to the suspicious transactions is approximately $37 million.
The company urges users to stay vigilant and follow their security advice. As the investigation continues, more information will be provided.
What industry is affected by Phemex's security breach? - Finance
Could the technology sector be impacted by the sophisticated nature of the attack on Phemex? - Yes, as the attack on Phemex's hot wallet system utilizes advanced hacking techniques, the technology industry potentially faces increased threats from similar attacks on other platforms.
