Singapore-based cryptocurrency exchange Phemex has suspended withdrawals after one of its hot wallets was hacked for $37 million. The platform’s developers plan to conduct an emergency audit and strengthen security measures.
Blockchain security firm Cyvers was the first to discover the breach, recording suspicious transfers of $29 million from Phemex hot wallets across multiple blockchains, including Ethereum, Binance SmartChain, Polygon, Optimism, Base and Arbitum.
Cyvers later confirmed that assets in the Bitcoin blockchain were also affected. Tron, bringing the total damage from the exploit to approximately $37 million. Cybersecurity experts also reported that the hackers quickly converted some of the stolen tokens into Ethereum.
Phemex CEO Federico Variola assured users that the exchange’s cold wallets, where most of the funds are stored, remain safe and secure. He also said the company is working on a compensation plan.
The Phemex development team apologizes for the inconvenience. Our mission to provide a smooth and reliable trading environment remains unchanged. We are working on a compensation plan that will be announced soon. Thank you for your understanding and continued support, — said Variola.
Phemex is one of the leading cryptocurrency exchanges in Singapore with a daily trading volume of $170 million.