Key facts
- Unocoin said BitGo froze its enterprise account on November 6 at the exchange's request and the freeze worked as intended.
- Unocoin said the transfers under investigation were signed and broadcast outside BitGo's platform.
- Unocoin suspects a BitGo multisignature wallet recovery feature was misused, and has not established how the transfers occurred.
- Unocoin said its servers had been compromised, disclosing outgoing transactions from an Ethereum address in its BitGo wallet infrastructure.
- Unocoin has not announced a date for restoring services.
- A November 5 warning from India's cybersecurity agency described an AI-assisted campaign targeting crypto exchanges; no link to Unocoin is established.
Indian cryptocurrency exchange Unocoin has kept deposits and withdrawals suspended while it investigates whether suspicious transfers from wallets linked to custodian BitGo were made using a recovery feature, the exchange said on November 13.
Unocoin said BitGo froze the exchange's enterprise account on November 6 at Unocoin's request and that the freeze worked as intended. The transactions under investigation were signed and broadcast outside BitGo's platform, the exchange said.
Unocoin said BitGo's multisignature wallets include a recovery feature that lets wallet holders access funds if BitGo becomes unavailable. Unocoin suspects the feature was misused and has yet to establish how the transfers occurred or whether it lost any digital assets.
Unocoin and BitGo did not respond to Cointelegraph's request for more information before publication.
Unocoin first detected the unauthorized activity on November 6 and suspended all services on Monday, November 9, after detecting further activity. On Thursday, November 12, 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.
A November 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.