Cryptocurrency exchange Phemex likely suffered a $30 million hack

Phemex, a prominent cryptocurrency exchange based in Singapore, has temporarily suspended all withdrawals following a significant security breach that resulted in the loss of approximately $30 million. The incident, which occurred on January 23, 2025, has raised alarms within the crypto community, particularly regarding the safety of user funds and the integrity of exchange security protocols.

Key Takeaways

• Phemex suspended withdrawals after detecting suspicious transactions.

• Initial reports indicated losses of around $30 million, later estimates suggested losses could exceed $37 million.

• The breach is suspected to involve North Korean hackers, according to blockchain security experts.

• Phemex's CEO assured users that cold wallets remain secure and a compensation plan is in the works.

Overview Of The Incident

On January 23, 2025, Phemex announced the suspension of withdrawals due to alarming reports of suspicious activity linked to its hot wallets. Blockchain security firm Cyvers detected multiple transactions across various blockchains, including BNB, Ethereum, and others, indicating a coordinated effort to drain funds from the exchange.

The initial estimate of stolen assets was around $30 million, but further analysis revealed that the total losses could be as high as $37 million. The attackers reportedly executed over 125 suspicious transactions, swiftly converting stolen tokens into Ethereum to evade detection and potential freezing measures.

List of stolen assets from Phemex. Source: Lookonchain на X

Response From Phemex

In response to the breach, Phemex's CEO, Federico Variola, took to social media to reassure users that the exchange's cold wallets, which are not connected to the internet, remain secure. He emphasized that the investigation into the hot wallet compromise is ongoing and that the exchange is committed to restoring normal operations as soon as possible.

Phemex has also initiated an emergency inspection of its security protocols and is working on a compensation plan for affected users. The exchange has promised to keep its users updated on the situation and has expressed regret for the inconvenience caused by the withdrawal suspension.

Sources

• Crypto Exchange Phemex Suspends Withdrawals After $30M Hack, NewsBTC.

• Phemex Hacked: Over $29 Million Stolen Across Multiple Blockchains – News Bytes Bitcoin News, Bitcoin.com News.

• Cryptocurrency exchange Phemex suspends withdrawals due to US$30 million suspicious outflows, Dimsum Daily.

• Scam Alert: Phemex Exchange Halts Withdrawals as Millions Feared Drained, U.Today.