Indian cryptocurrency exchange Unocoin has extended its suspension of deposits and withdrawals as it probes suspicious transfers from wallets linked to custodian BitGo. The exchange suspects that a recovery feature in BitGo’s multisignature wallets may have been misused to access funds while its account was frozen.
Unocoin reported the unauthorized activity on Nov. 6 and initially froze all services on Monday after detecting further suspicious transactions. On Thursday, it disclosed outgoing transactions from an Ethereum address within its BitGo wallet infrastructure, suggesting its servers had been compromised.
The exchange stated that BitGo froze its enterprise account on Nov. 6 at Unocoin’s request, and the freeze functioned as intended. However, the transactions under investigation were signed and broadcast outside BitGo’s platform, raising concerns about the security of the recovery feature.
Unocoin has not yet determined whether any digital assets were lost or how the transfers occurred. Neither Unocoin nor BitGo responded to requests for additional details before publication. The exchange has not announced when it plans to restore services.
A Nov. 5 warning from India’s cybersecurity agency highlighted an AI-assisted campaign targeting crypto exchanges and other financial firms, though no direct link to Unocoin’s incident has been confirmed.