Unocoin halts all services after hackers bypass BitGo freeze

Unocoin says suspected misuse of backup wallet access enabled unauthorized transfers outside BitGo as the exchange investigates losses.

Crypto exchange Unocoin said on Nov. 13 that disputed wallet transfers were signed and broadcast outside BitGo, while the freeze on its BitGo enterprise account had worked so far.

The exchange suspended all services on Nov. 9 after detecting further unauthorized activity. It had requested freezes on its enterprise accounts at BitGo and Fireblocks after initially detecting the activity on Nov. 6.

In its incident update , Unocoin said a backup mechanism designed to preserve access to funds if BitGo became unavailable appeared to have been exploited. It is still investigating how that mechanism was used, cryptocurrency losses, and potential information exposure.