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- Phemex hot wallet breach impacts multiple blockchains, increasing total losses to an estimated $37 million.
- Crypto hacks in 2024 caused $3.01 billion in losses, emphasizing the growing need for enhanced security.
Crypto exchange Phemex is facing a security breach concerning its hot wallets. Thought to be a hacking attack with approximately $29 million stolen, the occurrence spread throughout several blockchain networks, including BNAV, ETH, OP, POL, BASE, and ARB. The assets comprise several crypto assets, including USDT, USDC, Ethereum (ETH), and others. As of press time, the assets have been changed to Ethereum.
Deeper analysis showed Bitcoin and TRON blockchains were likewise compromised. This puts the whole projected loss at about $37 million, according to Cyvers Alerts. This result highlights the value of Phemex’s losses, therefore aggravating the effect of the strike.
🚨ALERT🚨Hey @Phemex_official, Our systems have detected multiple suspicious transactions involving your hot wallets across several chains.
Over $29M worth of digital assets have been transferred by suspicious addresses on chains including $BNB, $ETH, $OP, $POL, $BASE, and $ARB.… pic.twitter.com/1bFlRmlLUz— 🚨 Cyvers Alerts 🚨 (@CyversAlerts) January 23, 2025
Withdrawal Suspensions as Phemex Investigates the Breach
Not too long later, Phemex stopped providing withdrawal services to look into things closely. The exchange further guaranteed that the hack had no effect on the security of its cold wallets. Phemex also said that while they draft compensation plans for impacted users, trading operations are still running properly.
According to the CNF report, this hacking incident has added to a long list of cybercrime instances in the crypto sector. Hacks and scams have cost the crypto market $3.01 billion just in 2024 alone. Of that total, North Korean hackers attributed about $1.34 billion, while the other $2.15 billion came from hacks only.
This information emphasizes the notable rise in crypto-related hacker activity. Actors are becoming increasingly clever in using security flaws on several platforms, including big exchanges like Phemex.
To guarantee that user assets were backed 1:1, the exchange had earlier built a hierarchical deterministic cold wallet technology and released proof-of-reserves. This event, however, emphasizes how insufficient even very advanced security systems are without consistent examination and modification.
Users should always be cautious when storing their digital assets and make use of services offering a greater layer of protection.
