Exmo, a UK-based cryptocurrency exchange, has suffered a serious security breach that resulted in the platform freezing all withdrawals.
According to a security advisory dated December 21 Exmo discovered suspicious withdrawal activity on Monday, with large amounts of major currencies such as Bitcoin (BTC) pouring out of the platform’s hot wallets.
Maria Stankevich, director of business development at Cryptocurrency Exchange Exmo, told Cointelegraph that the incident was “nothing very serious” as the hot wallets affected represented 5% of the exchange’s total assets. “Let’s stress that all cold wallet assets are secure,” the ad reads.
According to the announcement, Other affected cryptocurrencies were Ether (ETH), XRP, Tether (USDT), Zcash (ZEC) and Ethereum Classic (ETC). The exchange mentioned above corresponds to crypto wallets likely to be involved in the hack and asks the global exchange to block the associated wallets.
Noting that the exchange has not yet calculated the size of the losses, Stankevich stated that Exmo is now focused on tracking the movement of the withdrawn funds.
Exmo opened a security investigation and also reported the case to the London police. The company urged users not to fund Exmo wallets until the problem was resolved. “We would like to assure you that Exmo will have full coverage of the user pool if it is affected by this incident,” said the company.
In early December, Exmo received a temporary registration from the UK Financial Regulator that allowed it to continue operations for an extended period until July 9, 2021.