Phemex Exchange Suspected of $37 Million Hack

Cybercriminals have struck again, this time targeting Phemex, a digital asset derivatives platform based in Singapore. On Thursday, blockchain security firm Cyvers detected suspicious transactions involving several blockchain networks, including Ethereum (ETH), Binance Smart Chain (BNB), Optimism (OP), Coinbase’s Base, Polygon (POL), and Arbitrum (ARB). Sharing the news on Twitter, the company reported that these transactions have already resulted in the loss of approximately $37 million, with the hackers swapping the stolen assets for Ether ETH $1 641 24h volatility: 1.1% Market cap: $197.97 B Vol. 24h: $13.82 B .

Phemex’s Response

While the full extent of the hack remains under investigation, Phemex CEO has assured users that the company’s cold wallet remains secure. In an official statement, the CEO emphasized that user assets are safe and that the team is working diligently to identify the issue.

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Hello everyone, as we look into a report on one of our hot wallets rest assured our cold wallets remain safe and can be checked by everyone here, will post more updates shortlyhttps://t.co/5d9obJcPjS

— Federico0x @Phemex (@Federico0x) January 23, 2025

The Phemex incident adds to a growing list of cryptocurrency hacks in 2024. According to a report by blockchain analysis firm Chainalysis, funds stolen from hacking digital asset platforms surged 21% from the previous year, reaching $2.2 billion in 2024.

Notably, North Korean hacking groups have been particularly active, responsible for approximately $1.34 billion in stolen digital assets across 47 incidents in 2024.

Among the significant crypto exploits in 2024, the attack on Japan’s DMM Bitcoin exchange stands out, with hackers stealing $305 million, leading to the exchange’s shutdown. Additionally, blockchain intelligence firm TRM Labs reported that by the third quarter of 2024, over $2.2 billion had been stolen in crypto hacks, surpassing the $1.8 billion lost in all of 2023.

Implications for the Crypto Industry

The increasing frequency and scale of these attacks highlight the pressing need for enhanced security measures within the cryptocurrency industry. Exchanges and platforms must prioritize safeguarding user assets to maintain trust and ensure the sector’s long-term viability.

In response to rising cyber threats, some companies are stepping up their security efforts. On January 22, Canada-based crypto exchange Hibt Exchange announced a new Security Upgrade Package aimed at enhancing protections against cyber criminals.

Announcing the launch on January 22, the company said the move is part of its broader commitment to providing a secure trading environment for users worldwide.

Similarly, Fireblocks, a leading blockchain security firm, has expanded its suite of security offerings to combat evolving threats. Last year, the company introduced dApp Protection and Transaction Simulation, a feature designed specifically for institutional investors exploring the decentralized finance (DeFi) ecosystem.

The new tools aim to prevent malicious transactions and enhance risk assessment before execution.

Earlier this month, the Sui Foundation announced a partnership with Chainalysis to enhance the security of its blockchain network against malicious actors.

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