Phemex Investigates $70 Million Hot Wallet Exploit

Singapore-based cryptocurrency exchange Phemex is currently investigating a significant security breach that has resulted in the loss of approximately $70 million in assets. The hack, which occurred on January 23, targeted the exchange’s hot wallets and is believed to be the largest crypto hack of 2025 so far.

Scope of the Hack

According to blockchain analytics firm PeckShield, the hack impacted wallets across multiple blockchains, including Ethereum, Solana, XRP, and Bitcoin. The breakdown of losses as of January 24 is as follows:

  • Approximately $20 million worth of assets drained on Ethereum
  • $17 million in losses on Solana
  • $13 million in XRP losses
  • $5.3 million in Bitcoin losses

Analysts from Hacken believe that the unidentified hackers, who are suspected to have ties to North Korea, quickly converted stolen Tether and USD Coin stablecoins into Ethereum to bypass blacklisting risks.

Phemex Response

Phemex CEO Federico Variola reassured users that the exchange’s cold wallets “remain safe.” He also announced that USDT and USDC withdrawals are being progressively restored, with all requests being manually reviewed by the security team.

“All requests will be manually reviewed by our security team, so please be patient with the queue time.” – Federico Variola

Additionally, Variola stated that Bitcoin wallets were not impacted, and withdrawals for BTC will be enabled soon. Phemex is working on a compensation plan, which will be announced soon.

Tips for Protecting Your Crypto Assets

To minimize the risk of falling victim to a similar hack, consider the following tips:

  • Use cold wallets for storing large amounts of cryptocurrencies
  • Enable two-factor authentication (2FA) for your exchange accounts
  • Regularly review and update your account security settings
  • Be cautious of phishing scams and suspicious emails

Stay up-to-date with the latest cryptocurrency news and security tips on Global Crypto News.

Post Views: 1