Unocoin keeps deposits and withdrawals halted over suspect transfers
Unocoin said the transfers were signed outside BitGo’s platform while its account was frozen, possibly via a wallet recovery feature.
Indian cryptocurrency exchange Unocoin has halted deposits and withdrawals as it investigates potential misuse of a wallet recovery feature by BitGo, its custodian. The company said BitGo froze its enterprise account on November 6 at its request and that the freeze functioned as intended. However, Unocoin suspects the recovery feature may have been abused, and the investigation is ongoing to determine the cause and whether any digital assets were lost.
The exchange first became aware of unauthorized activity on November 6 and suspended all services on Monday after detecting further activity. It disclosed outgoing transactions from an Ethereum address in its BitGo wallet infrastructure on Thursday, revealing a potential server compromise. Unocoin has not yet provided a timeline for restoring services.
While India’s cybersecurity agency issued a warning about an AI-assisted campaign targeting crypto exchanges and financial firms on November 5, no link has been established to Unocoin’s incident.
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