Phemex Crypto Exchange Hit by $70M Hack, North Korean Link Suspected
Sohrab Khawas24 Jan 20252 min read
Phemex, a cryptocurrency exchange based in Singapore, has suffered a major security breach, losing over $70 million. The hack has raised alarm in the crypto community, with many pointing to North Korean hackers as the likely culprits, continuing a troubling trend of cyberattacks in the industry.
The attack began when one of Phemex’s hot wallets was compromised, leading to a theft of $30 million. Unfortunately, things got worse as more tokens were stolen, including $USDC, $USDT, $ETH, $LINK, $PEPE, $FET, and $AVAX. Security firms Cyvers and Lookonchain tracked the suspicious activity and found transactions that suggested a breach.
The stolen assets include significant amounts of popular tokens:
- 3.48 million USDC
- 841 ETH ($2.7 million)
- 110,701 LINK ($2.69 million)
- 142 billion PEPE ($2.12 million)
Phemex Takes Action
To prevent further losses, Phemex suspended withdrawals temporarily. CEO Federico Variola addressed the issue on X, explaining that the funds were taken from a hot wallet, which is under investigation. He reassured users that the exchange’s cold wallets are still secure and fully auditable at any time, thanks to the platform’s proof-of-reserves system.
“As for cold wallets, they are protected, and everyone can verify that,” Variola said.
Despite the hack, Phemex continues to offer its trading services and other operations as usual.
Transparency and Compensation Plans
Phemex was one of the first exchanges to release its proof-of-reserves and proof-of-solvency, helping to build trust with its users. The platform has promised to compensate those affected by the hack and is working on a plan to do so. More details will be shared soon.
The North Korean Link
The hack has once again brought attention to North Korean cybercriminals, especially the Lazarus Group, which has been linked to several high-profile crypto attacks in the past. This attack appears to follow the same pattern, showing that these groups are determined to exploit weaknesses in the cryptocurrency market for funding their illegal activities.
Phemex has committed to being transparent and keeping users informed as the investigation continues. The exchange urges all users to stay vigilant, regularly check their wallets, and only trade on trusted platforms.
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