Phemex, a cryptocurrency exchange based in Singapore, has been targeted by hackers in a cyberattack that resulted in the theft of more than $85 million in digital assets. The breach, which occurred on January 23, initially saw suspicious transactions across multiple blockchains, with initial estimates of the losses pegged at around $29 million. However, further investigation revealed that fraudulent transactions were spread across 16 blockchains, increasing the total loss to over $85 million.
In response to the attack, Phemex took immediate action, suspending deposits and withdrawals for most cryptocurrencies, including Bitcoin and Ethereum. The exchange also implemented a Proof of Reserves (POR) to provide transparency and reassure users of the security of remaining funds.
“We swiftly activated our emergency response system, identified the affected devices, and isolated them. We have also reported the incident to third-party security experts and law enforcement for further investigation,” Phemex stated in an official incident report.
Exchange Takes Steps to Restore Operations
Over the weekend, Phemex resumed limited withdrawal functions, informing users of new deposit addresses and the likelihood of longer transaction times due to manual reviews of deposits sent to the previous address. The exchange also emphasized that all user funds were being protected, with enhanced security protocols in place.
“Our updated system, now live, is closely monitored by our cybersecurity partner. We’ve made significant improvements to security and operational reliability,” the company assured its users.
Compensation Plan in Progress
On Thursday, Phemex updated users on social media, stating that it was working on a compensation plan for those affected by the breach, with further details to be announced soon. Despite the cyberattack, Phemex confirmed that its trading services remain operational.
Ongoing Investigation and Industry Impact
The breach highlights the ongoing vulnerabilities in the cryptocurrency exchange space, where cyberattacks have become increasingly common. Phemex’s prompt response and collaboration with cybersecurity experts and law enforcement will be critical in determining the full extent of the attack and recovering stolen assets.
References:
- Phemex Official Incident Report
- www.securityweek.com
- Law Enforcement and Cybersecurity Reports
Hackers picture by rawpixel CCA BY 4 0
