Indian cryptocurrency exchange Unocoin has kept deposits and withdrawals suspended while it investigates whether suspicious transfers from wallets linked to custodian BitGo were made using a recovery feature.
On Friday, Unocoin said BitGo had frozen the exchange’s enterprise account on Nov. 6 at its request, and that the freeze worked as intended. The transactions under investigation were signed and broadcast outside BitGo’s platform, the exchange said.
The exchange said BitGo’s multisignature wallets have a recovery feature that lets wallet holders access funds if BitGo becomes unavailable. Unocoin suspects the feature was misused but has yet to determine how the transfers occurred or whether it lost any digital assets.
Unocoin and BitGo did not respond to Cointelegraph’s request for more information before publication.
Unocoin first detected the unauthorized activity on Nov. 6 and suspended all services on Monday after detecting further activity. On Thursday, it disclosed outgoing transactions from an Ethereum address in its BitGo wallet infrastructure and said its servers had been compromised.
The exchange has not announced when it will restore services.
A Nov. 5 warning from India’s cybersecurity agency described an AI-assisted campaign targeting cryptocurrency exchanges and other financial firms. No connection to Unocoin’s incident has been established.
