Unocoin Suspends Withdrawals and Deposits After Suspicious Transfers

Cryptocurrency exchange Unocoin continues to suspend deposits and withdrawals on its platform. The measure follows the detection of suspicious transfers originating from wallets linked to custodian BitGo.

The company reported that the transactions were signed outside of the BitGo platform. The incident occurred even though the exchange's corporate account had been frozen since November 6. Unocoin points to the possibility that the wallet recovery feature was misused.

The exchange's servers were compromised according to an official statement from the company. Unocoin has not yet confirmed whether there was an actual loss of digital assets during the period of instability. The technical team is working to understand the origin of the unauthorized operations.

Service remains interrupted indefinitely. The exchange initially detected anomalous activity at the beginning of November and chose to halt operations to protect users. There is no forecast for when platform functionality will return.

The digital asset sector faces elevated risks when failures in custody systems or server compromises allow for external movements. Events of this nature increase the perception of risk regarding centralized custody security and may pressure asset liquidity on specific exchanges.