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.
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.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, 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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Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, 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.
