Unocoin Suspends Operations After Security Mechanism Failure

Cryptocurrency exchange Unocoin halted all services on November 9. The decision followed the identification of unauthorized activity within its accounts.

Preliminary investigations point to attackers exploiting a wallet backup mechanism. This system was designed to ensure access to funds should the provider BitGo become unavailable.

Disputed transfers were authorized outside of BitGo infrastructure. The freeze on corporate accounts requested by the exchange did not prevent the use of this alternative signing route.

BitGo security protocols utilize three distinct keys to validate transactions. The combination of the user key and the backup key allows for asset movement without direct participation from the provider.

This specific configuration bypasses withdrawal policies set on the platform. Unocoin continues to assess the extent of financial losses and the potential exposure of customer data.