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Singapore-based cryptocurrency platform Phemex fell victim to a suspected cyberattack that resulted in the theft of over $69 million in digital assets, prompting the company to halt certain operations.
Phemex CEO Federico Variola announced on Friday that withdrawals are being gradually restored, though the platform is temporarily instituting manual reviews of withdrawal requests.
“We’ve captured a snapshot of all users’ balances as of 12 pm UTC to provide a reward as a gesture of gratitude for your support and loyalty—more details will be shared soon,” Variola stated, emphasizing that additional precautions were necessary due to the sophisticated nature of the attack.
Timeline of the Incident
The breach was initially flagged on Thursday morning when blockchain security firms observed suspicious activity. Researchers from Cyvers reported seeing $29 million in cryptocurrency leaving Phemex, while PeckShield later confirmed that a total of $69 million worth of ETH, Bitcoin, Binance Coin, and other digital assets had been siphoned from the platform.
Phemex has yet to comment on the exact details of the breach but has issued an apology to its customers via social media. The company emphasized its commitment to maintaining a secure trading environment, noting, “Our ongoing business operations are unaffected, and trading services remain active. A compensation plan is in the works and will be announced soon.”
A String of Crypto Attacks in Singapore
The attack on Phemex marks the third major heist targeting a Singapore-based cryptocurrency platform in recent months. In September, Penpie lost nearly $30 million to hackers, while BingX suffered a $44 million theft.
Experts have pointed to North Korean hackers as potential perpetrators due to the technical sophistication of the attacks. These groups are frequently accused of orchestrating large-scale cryptocurrency heists to fund illicit activities, including weapons development programs.
The Phemex breach underscores the urgent need for enhanced security measures within the cryptocurrency industry. As hackers grow increasingly sophisticated, industry leaders and governments alike must work together to safeguard digital assets and prevent similar incidents in the future.
