Unocoin Probes Potential Losses After Transactions Bypass BitGo Platform

Unocoin, an India-based cryptocurrency exchange, is investigating possible asset losses after abnormal transactions tied to a BitGo multisignature backup wallet were signed and broadcast to blockchain networks outside BitGo’s platform, the exchange said.

Unocoin said the transactions did not go through BitGo’s system: both signing and broadcast took place externally. The exchange’s update places the activity outside the custodian’s platform at the point the transactions were authorized and sent.

Unocoin’s initial review suggests the backup wallet may have been exploited. The exchange described it as a fallback mechanism meant to preserve customer access to assets if BitGo could not provide service.

Unocoin said it has received the information and explanations it requested from BitGo. BitGo froze Unocoin’s corporate account Nov. 6 at the exchange’s request, and the freeze is working as intended.

The investigation remains preliminary as Unocoin examines the wallet’s possible use and potential asset losses.