News Report Technology
January 24, 2025

Phemex Set To Resume Stablecoin Withdrawals After $70M Security Breach

In Brief

Phemex will resume USDT and USDC withdrawals in about 4 hours, along with other services, such as MemeX.

Phemex To Resume Stablecoin Withdrawals Today, Following Security Breach

CEO of the derivatives trading platform Phemex, Federico Variola, provided an update on social media platform X, announcing that the exchange will resume USDT and USDC withdrawals in approximately 4 hours, with securing the architecture of its hot wallets remaining a top priority. Other services, such as MemeX, are also expected to be restored around the same time.

Yesterday, the platform experienced a security breach, resulting in a loss of over $70 million in various cryptocurrencies. Withdrawals were paused after several blockchain security firms alerted the platform to suspicious activity. The affected blockchains included BNB Chain, Ethereum, Optimism, Polygon, Base, and Arbitrum. The stolen funds were then swapped for ETH. At the time of the alert, approximately $30 million had been drained, although the attack continued, leading to further stolen tokens.

Phemex still holds around $1.8 billion in cryptocurrency assets. The majority of these assets are in the exchange’s token, PT, which makes up $1.1 billion of its holdings. The next two largest holdings are $355 million in bitcoin and $209 million in USDT.

Phemex Reports Developing Compensation Plan For Affected Users

Phemex is a platform that specializes in derivatives trading, including futures and options. Founded in 2019 by former Morgan Stanley executives and headquartered in Singapore, the exchange differentiates itself through several key features, including competitive trading fees, deep liquidity pools, and ultra-fast order execution times of under 1 millisecond. 

It places a strong emphasis on user experience with tools such as intuitive charting options, a straightforward wallet interface, and a simple registration process. Phemex supports spot, contract, and margin trading across a wide variety of cryptocurrencies.

Ranked 55th by trading volume and 37th on CoinGecko’s trust score, the exchange has stated that it is currently “working on a compensation plan” for users affected by the recent security breach.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

More articles
Alisa Davidson
Alisa Davidson

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

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