Unocoin keeps deposits and withdrawals halted over suspect transfers
Indian cryptocurrency exchange Unocoin has kept deposits and withdrawals suspended as it investigates suspicious transfers from wallets linked to custodian BitGo.
The exchange said BitGo had frozen its enterprise account on Nov. 6 at Unocoin's request, and the freeze worked as intended. The transactions under investigation were signed and broadcast outside BitGo's platform, Unocoin said.
Wallet Recovery Feature
Unocoin suspects that BitGo's multisignature wallets' recovery feature was misused. This feature allows wallet holders to access funds if BitGo becomes unavailable. The exchange has yet to establish how the transfers occurred or whether any digital assets were lost.
The transfers were signed outside BitGo's platform while its account was frozen, possibly via a wallet recovery feature.
Service Suspension
Unocoin first detected unauthorized activity on Nov. 6 and suspended all services on Monday after detecting further activity. On Thursday, it disclosed outgoing transactions from an Ethereum address in its BitGo wallet infrastructure and said its servers had been compromised.
The exchange has not announced a date for restoring services. Unocoin and BitGo did not respond to Cointelegraph's request for more information before publication.
Cybersecurity Context
A Nov. 5 warning from India's cybersecurity agency described an AI-assisted campaign targeting crypto exchanges and other financial firms. No connection to Unocoin's incident has been established.
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