Phemex exchange is allegedly facing a security breach with funds worth $29 million stolen.
According to Cyvers Alerts, the Phemex exchange hot wallet has marked numerous questionable transactions totaling over $29 million across several chains that may have been compromised.
According to the reports, these assets have been converted into ETH and originate from chains like BNB, ETH, OP, POL, BASE, and ARB.
Phemex Acknowledges Allegations; Assures Cold Wallet Safety
Phemex CEO Federico Variola took to X, responding to the report saying “Hello everyone, as we look into a report on one of our hot wallets rest assured our cold wallets remain safe and can be checked by everyone here, will post more updates shortly.”
The reports of the security breach come at a time when hacks, breaches and frauds have become quite prevalent in the sector.
Phemex’s Security Breach Comes As Illicit Activities See Rise in The Sector
The Phemex security breach comes as illicit incidents in the sector have picked heat in the industry. Just in the previous trading hours, the official X (previously Twitter) account of Nasdaq was compromised and used to advertise $STONKS, a fake meme coin.
By tagging a phony X account as a Nasdaq affiliate and then retweeting posts to increase the memecoin’s visibility, the hacker took advantage of the account’s legitimacy.
According to reports, the $STONKS token was generated on the same day as the hack and was advertised as a fake of an already-existing memecoin on the Solana blockchain, which is the owner of the original’s intellectual property.
The incident highlights persistent flaws in social media platforms used for cryptocurrency frauds, even if the false posts have now been taken down and the phony account has been suspended.
Also Read: Clipper DEX Clarifies Security Breach, Confirms API Vulnerability Behind $450,000 Exploit
Phemex’s Previous Launch of MemeX
Phemex’s account breach allegations come in parallel with the platform launch MemeX. The new feature was added to improve user access to Solana Tokens.
Since the site was among the first to offer $TRUMP over the weekend, people have been eagerly taking use of the new service, which has rapidly gained traction.
MemeX guarantees that users may easily explore the Solana blockchain and beyond by doing away with the need for wallets and providing a quick, user-friendly trading interface.
In response to the growing need for convenient access to the dynamic realm of meme tokens and on-chain projects, this new solution provides a smooth merger of centralized (CEX) and decentralized (DEX) trading experiences.
Also Read: Crypto Hack: SlowMist Uncovers Critical Wallet Security Breach In Humanity Protocol