Blockchain security specialists from Cyvers Alerts reported suspicious activity involving one of the hot wallets of the Singapore-based crypto exchange Phemex.

Phemex became a victim of a hack and lost about $29 million as a result of the exploit. In the most notable episode, the hacker’s address (0x5B344) was withdrawn 744,696 USDT and 1,767,957 USDC. The stablecoins were then distributed across several crypto wallets and quickly converted into ether to avoid possible freezing of the stolen assets.

In total, Cyvers Alerts analysts discovered 125 suspicious transactions involving one of the Phemex wallets in 11 blockchain networks, including Binance Smart Chain, Ethereum, Optimism, Polygon, Base, Arbitrum.

Phemex announced about the temporary suspension of withdrawals and assured clients that all losses would be compensated. Phemex CEO Federico Variola saidthat the exchange team is studying the problem and assured that the cold wallets of the trading platform remain safe.

Previously, the M2 Exchange cryptocurrency exchange suffered a similar hacking of hot wallets. Despite the quick response from the security service, the exchange lost more than $13 million.