Singapore-based cryptocurrency exchange Phemex is investigating suspicious transactions involving its hot wallets, as identified by security firm Cyvers.
Over $37 million in digital assets, including Bitcoin, Ethereum, and TRON, were reportedly affected across multiple chains.
Phemex Suspends Withdrawals
Phemex has confirmed the incident and temporarily halted withdrawals. Cyvers noted over 125 suspicious transactions on the hot wallets.
The exchange stated that its cold wallets—holding the majority of users’ funds—remain secure and unaffected.
These wallets are fully transparent and verifiable, as the exchange emphasized.
“More than 125 suspicious transactions moving funds from Phemex hot wallets to new wallets on different chains such as Ethereum, Polygon, Binance, Optimism, Polygon, Base, Avalanche, Bitcoin, Tron, Solana, and probably more. Some of the tokens and stablecoins have already been swapped to avoid freezing,” Cyvers Co-founder & CTO, Meir Dolev told BeInCrypto.
Phemex is one of the largest crypto exchanges in Singapore. According to CoinGecko data, the exchange has a daily market volume of over $177 million and nearly a million monthly traffic.
“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,” Phemex announced on X (formerly Twitter).
The broader cryptocurrency market has faced increased security challenges this year. Reports show that losses from hacks have reached $2.15 billion in 2024, with scams contributing an additional $834.5 million. This represents a 15% rise in losses compared to 2023.
High-profile incidents involving platforms like WazirX, Radiant Capital, and DMM Bitcoin have exposed vulnerabilities in multisig wallets and DeFi protocols.
Additionally, scammers are increasingly exploiting professional platforms like LinkedIn to target crypto users.
Recent reports highlight how attackers use legitimate tools, such as video conferencing platforms and detailed job offers, to gain victims’ trust before executing their schemes.
Other platforms have also faced scrutiny over potential security issues. Hyperliquid, a decentralized exchange, recently saw $60 million in USDC outflows. This was driven by rumors of a breach linked to North Korea’s Lazarus Group.
The company denied any hack but acknowledged suspicious activity involving ETH deposits and withdrawals.
The surge in crypto adoption has made security an increasingly critical priority for the industry. Access control failures, such as private key compromises, remain a significant threat.
Strengthening protections and developing proactive measures are vital as the crypto space continues to expand and attract new users.
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