Add as a preferred source on GoogleUnocoin Maintains Deposit and Withdrawal Halt During Crypto Probe
The exchange suspects a BitGo wallet recovery feature may have been misused but has not determined whether any digital assets were lost.
Indian exchange Unocoin is keeping deposits and withdrawals suspended as it investigates crypto transfers from linked wallets that were signed and sent outside BitGo’s platform while Unocoin’s enterprise account with the custodian was frozen.
On Friday, Nov. 13, Unocoin said BitGo had frozen its enterprise account on Nov. 6 at the exchange’s request. Unocoin said the freeze worked as intended, even though the transfers under investigation were signed and sent outside BitGo’s platform.
Unocoin suspects someone may have misused a recovery feature in BitGo’s multisignature wallets. The exchange described the feature as a way for wallet holders to access funds if BitGo becomes unavailable.
The exchange has not determined how the transfers occurred or whether it lost any digital assets. It has not announced when deposits and withdrawals will resume.
In a Thursday update, Unocoin noted outflows from an Ethereum address connected to its BitGo wallet setup and described its servers as compromised.
Simon Yoon
ReporterSimon Yoon reports on blockchain technology for TokenPost. Send corrections or tips to info@tokenpost.com.