Phemex Crypto Exchange Loses $85 Million in Sophisticated Hack

Last week, the cryptocurrency exchange Phemex suffered a cyberattack in which hackers stole over $85 million worth of cryptocurrency. In response, the exchange has suspended deposits and withdrawals and has published Proof of Reserves to ensure transparency.

Details of the Incident

According to Phemex CEO Federico Variola, only the exchange’s hot wallets were affected by the attack, while cold wallets remained secure. Variola described the attack as “sophisticated” but did not provide further details about the incident.

“On January 23, 2025, we detected unusual activity in our hot wallet. We quickly activated our emergency response mechanism, suspended relevant functions, and began addressing potential vulnerabilities,” the company’s official statement reads. “The affected devices were identified and isolated, and we have notified third-party cybersecurity firms and law enforcement agencies for further support and action.”

Rising Estimates of Stolen Funds

Initial estimates put the value of the stolen cryptocurrency at $29 million. However, blockchain analytics firm PeckShield later reported that over $69 million had been stolen. The estimated losses increased again when Taylor Monahan from MetaMask calculated that the total value of stolen assets was at least $85 million.

Restoration of Services and Security Measures

Currently, Phemex is gradually restoring withdrawal services. Withdrawals are now available for ETH, USDT, and USDC on Ethereum; SOL, USDT, and USDC on Solana; as well as on Arbitrum, Optimism, BSC, Polygon, and Base.

The company emphasizes that it has launched a new security system, which is monitored by an external cybersecurity partner. Phemex promises to fully resume all operations soon and guarantees the “absolute security” of user assets.