One of the Largest Crypto Exchanges Phemex has been hacked with a theft of over $85 million worth of cryptocurrency.
The Phemex hack, which occurred on January 23, 2025, targeted the exchange’s hot wallets, leaving cold wallets unaffected. This cryptocurrency theft is a major blow to the Phemex platform.
Phemex CEO Federico Variola confirmed the incident, stating, “On January 23, 2025, at 11:30 UTC, we detected unusual activity in our hot wallet. We quickly activated our emergency response mechanism, suspended related functions, and began addressing potential vulnerabilities.”
The company immediately suspended deposits and withdrawals and published proof of reserves to maintain transparency. The affected devices were isolated, and the matter was reported to security firms and law enforcement.
Initial estimates placed the Phemex breach losses at $29 million.
However, PeckShield revised this figure to $69 million, before MetaMask’s Taylor Monahan calculated the stolen crypto to be worth at least $85 million. This $85 million cryptocurrency loss represents a substantial financial impact.
Phemex has implemented a new security system, closely monitored by its cybersecurity partner. Withdrawals are being gradually restored, starting with ETH, USDT, and USDC on Ethereum, followed by Solana and other networks.
The exchange cautions against using old deposit addresses. Users with pending deposits should contact customer support.
Phemex hack highlights the ongoing vulnerability of cryptocurrency exchanges to sophisticated attacks
The scale of this $85 million stolen cryptocurrency points to the involvement of highly skilled threat actors.
While the perpetrators remain unidentified, such sophisticated cryptocurrency theft is often associated with North Korean hacking groups like Lazarus Group.
The Phemex breach adds to the growing concern over the vulnerability of cryptocurrency exchanges to sophisticated attacks.
It underscores the need for robust security measures within the cryptocurrency industry.
