As noted by Coin Central, Indian cryptocurrency exchange Unocoin is investigating a potential exploitation of its multisignature wallet backup mechanism following a series of unauthorized blockchain transactions. The incident prompted the exchange to suspend all services on Nov. 9 after detecting suspicious activity within its infrastructure.
Unocoin reported that unauthorized transactions occurred despite an enterprise account freeze implemented on Nov. 6. Investigations revealed that these transactions were signed and broadcast externally, bypassing the BitGo platform. The exchange suspects an emergency recovery mechanism was utilized to access funds, though the specific keys involved remain unidentified. BitGo confirmed that its security protocols functioned as intended, noting that the transactions did not involve its platform directly. Unocoin is currently working with both BitGo and Fireblocks to review holdings and secure its systems. The exchange has opted to rebuild its server environment rather than restore existing infrastructure, a process estimated to take four to five working days. While the full extent of the unauthorized transfers remains under investigation, Unocoin stated that more than 90% of customer cryptocurrency funds are held in cold storage and remain secure. The company continues to conduct security audits before resuming operations, though it has not disclosed specific loss amounts or the destination of the transferred assets.
Source: Coin Central
