Indian cryptocurrency exchange Unocoin stated that during the investigation into suspicious transfers related to wallets managed by custodian BitGo, the platform continued to suspend deposits and withdrawals.
Unocoin stated that on November 6th, BitGo froze the corporate account of that exchange at the request of Unocoin, and the freezing measures took effect as expected. Unocoin mentioned that the transaction under investigation was signed and broadcasted outside of the BitGo platform.
The exchange stated that the multi-signature wallet of BitGo includes a recovery function that allows the wallet holder to access their funds when BitGo is unavailable. Unocoin suspects that this function has been abused, but it has not yet been determined how these transfers occurred, nor has it been confirmed whether any digital assets have been lost.
Unocoin and BiGo did not respond to Cointelegraph's request for comments before publication.
Unocoin first detected unauthorized activities on November 6th and suspended all services on Monday after further activities were detected. On Thursday, the exchange disclosed a transfer transaction from an Ethereum address within its BitGo wallet infrastructure, indicating that its servers had been compromised.
The exchange has not yet announced a date for the resumption of services.
A warning issued by India's cybersecurity agency on November 5th indicated that an auxiliary attack campaign targeting cryptocurrency exchanges and other financial companies had occurred. However, no connection has yet been established between this warning and the Unocoin incident.
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