Unocoin Flags Unusual Transfers From BitGo Wallet as Probe Begins

Unocoin, an Indian cryptocurrency exchange, has flagged suspicious transfers from an Ether (ETH) address in a BitGo wallet used to fund ERC-20 tokens, and BitGo is investigating the activity.

Unocoin has not disclosed the transfers’ value or confirmed losses. The exchange said a freeze on its enterprise account is preventing it from viewing all of the suspicious transactions.

More than 90% of Unocoin users’ cryptocurrency is held in cold wallets, which are kept offline. The company is rebuilding its server infrastructure from scratch and expects the work to take about four to five business days.

Unocoin first detected unauthorized activity on Nov. 6 and requested freezes on its enterprise accounts at Fireblocks and BitGo that day. It found further unauthorized activity on Nov. 9 and suspended all services. Unocoin’s investigation found its infrastructure had been compromised. The cause, full impact and any data exposure remain under investigation.