Phemex Hacked: $37 Million Loss Raises Crypto Security Concerns

Singapore-based cryptocurrency exchange Phemex has launched an investigation into a potential security breach involving its hot wallets, with over $37 million worth of digital assets reportedly impacted. Security firm Cyvers first identified the suspicious transactions, which spanned multiple chains, including Bitcoin, Ethereum, and TRON.

Phemex quickly confirmed the incident and announced a temporary suspension of withdrawals to safeguard user assets. According to Cyvers, over 125 suspicious transactions moved funds from Phemexs hot wallets to newly created wallets across several chains such as Ethereum, Binance, Solana, and Avalanche. Some of these assets have already been swapped into other tokens and stablecoins to evade potential freezing.

The exchange reassured users that its cold wallets, which store the majority of customer funds, remain secure and verifiable. Transparency in wallet operations has been emphasized to reinforce trust.

“Our mission to provide a seamless and trusted trading environment remains steadfast. We are actively developing a compensation plan, which will be announced soon,” Phemex stated in an official announcement on X (formerly Twitter).

Phemex‘s Position in the Market

As one of Singapore’s largest cryptocurrency exchanges, Phemex boasts a daily trading volume exceeding $177 million and garners close to a million monthly visits, according to CoinGecko. The exchanges robust market presence makes this incident a critical concern for both users and the broader crypto community.

A Rising Tide of Crypto Security Challenges

The broader cryptocurrency landscape has faced heightened security threats in recent years. In 2024 alone, hacks accounted for $2.15 billion in losses, with scams contributing an additional $834.5 million. These figures represent a 15% increase compared to 2023, underscoring the growing sophistication of attacks on the sector.

Prominent cases, including incidents involving platforms like WazirX, Radiant Capital, and DMM Bitcoin, have highlighted vulnerabilities in multisig wallets and DeFi protocols. Attackers have also leveraged professional platforms like LinkedIn to exploit unsuspecting crypto users.