Phemex Exchange Hack: $29M Stolen, Withdrawals Suspended
Singapore-based cryptocurrency exchange Phemex is investigating a security breach that resulted in the theft of approximately $29 million from one of its hot wallets. In response, the exchange has suspended withdrawals as a precautionary measure to safeguard users’ funds while maintaining the functionality of trading and other services.
The hack was initially flagged by crypto security firm Cyvers, which identified unusual transactions originating from Phemex’s hot wallet. Blockchain analytics platform Lookonchain later confirmed the breach, detailing that stolen assets include:
- 3.48M USDC
- 3.42M USDT
- 841 ETH (~$2.7M)
- 110,701 LINK (~$2.69M)
- 142B PEPE (~$2.12M)
- 1.19M FET (~$1.45M)
- 29,509 AVAX (~$1.04M)
Phemex CEO Federico Variola addressed the situation on X (formerly Twitter), reassuring users that their cold wallets remain secure. “As we look into a report on one of our hot wallets, rest assured our cold wallets remain safe and can be checked by everyone here. More updates will be posted shortly,” he stated.
While withdrawals remain temporarily suspended, Phemex emphasized that the breach’s impact is minimal and that the exchange continues to operate normally. The company also reiterated its commitment to user security, noting that Phemex was among the first exchanges to publish proof-of-reserves and proof-of-solvency, allowing users to verify the status of cold wallets independently.
Phemex is reportedly working on a compensation plan for affected users, with further updates expected soon. The company has pledged to maintain transparency throughout the investigation and ensure that impacted customers are adequately supported.
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This incident highlights the persistent vulnerabilities faced by cryptocurrency exchanges and the importance of robust security measures to protect user assets. As Phemex works to resolve the situation, users are encouraged to remain vigilant and monitor updates from the exchange.
Amelia is a senior writer at Blockiance, focusing on the cultural implications of NFTs and digital ownership. Holding a master’s in media studies, she combines her academic background with a passion for storytelling to explore how Web3 technologies reshape creative industries.
