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Bitget Secures El Salvador Licenses and Rises to Third-Largest Crypto Exchange

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  • Bitget records $757.6B in futures trading volume, up 17.3% month-on-month.
  • Bitget surpasses 120 million users, shows impressive global investors interest.
  • Bitget launches “Onchain” feature to simplify access to DeFi assets.

Bitget has become the third-largest cryptocurrency exchange in trading volume, as announced in its April 2025 Transparency Report. The exchange achieved substantial growth despite the market decline and investor caution. The exchange’s futures trading volume saw a 17.3% increase to reach $757.6 billion while spot trading volumes increased to $68.6 billion.

Bitget’s growth demonstrates its resilience amid the industry challenges. Bitget has strengthened its position as a major player in the industry with a market share of 7.2%. Bitget has exceeded more than 120 million users across the world amid the recent market downturn.

Bitget Enters El Salvador With New Licenses

Furthermore, the platform has achieved major milestones in regulatory compliance. Bitget obtained both the Digital Asset Service Provider (DASP) and Bitcoin Services Provider (BSP)  licenses from the government of El Salvador. With the new licenses, Bitget can expand its crypto services to include staking, yield farming as well as spot and derivatives trading to users in El Salvador.

Bitget introduced the “Bitget Onchain” service in April to further drive innovation. With this feature, users can trade on-chain assets using stablecoins such as USDT or USDC on the Bitget app. Bitget intends to make it easier for users to participate in  decentralized finance (DeFi) as well as integrate centralized and decentralized assets.

Bitget continues to attract more institutional investors to its platform. The exchange enhanced its Liquidity Incentive Program to offer better maker-taker rates and speed up the onboarding for institutional investors. This approach aims to improve liquidity and meet the needs of institutional investors across the spot and derivatives markets.

Global Expansion

Bitget’s expansion plan includes regulatory compliance, product diversification and improved user experience. Bitget continues to strengthen its position in the blockchain industry with innovative trading features as well as improved regulatory compliance.

Bitget’s research team forecasts substantial growth in the blockchain industry in the future. The internal research team estimates that the industry could create 500,000 jobs by 2028, which shows the potential of blockchain technology to create jobs in future. Moreover, the exchange continues to expand its presence in major international events such as TOKEN2049 Dubai and Paris Blockchain Week.

Coinbase CEO Brian Armstrong Invites Former DOGE Staff to Join Crypto Exchange Roles

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  • Coinbase opens job opportunities for former DOGE staff amid crypto sector growth.
  • DOGE claims $170 billion in federal savings as Armstrong seeks their expertise.
  • Coinbase backed crypto-friendly PACs with over $70 million in 2024 political contributions.

Brian Armstrong, CEO of Coinbase, has invited U.S. Department of Government Efficiency (DOGE) employees to join his firm. In a recent post on X, Armstrong highlighted the possibility for these individuals to pursue their cause of establishing more efficient systems in the crypto sector. 

The invitation is targeted to accelerate the hiring process for former DOGE operatives and provide them with an opportunity to apply directly for positions at Coinbase. The offer is after a viral Fox News clip featuring Ethan Shaotran, a 22-year-old former DOGE staff member and Harvard dropout. 

Shaotran also revealed his personal experience working at DOGE, including social and academic challenges he encountered while working with the department. This is Armstrong’s response to Shaotran’s response to align Coinbase with the public support of the objectives of DOGE.

DOGE’s Mission and Its Impact on Federal Operations

The Department of Government Efficiency (DOGE), established in Trump’s presidency, was to facilitate the streamlining of federal operations and cut unnecessary expenses. Under the leadership of Elon Musk and Vivek Ramaswamy, DOGE saved substantially citing $170 billion from asset sales, layoffs and the slashing of redundant programs. 

However, DOGE has dealt with criticism, such as concerns about security and public objections to its approach. Even so, Armstrong’s outreach points to an increasing link between tech efficiency and the crypto market. Shaotran and other DOGE staff members were acknowledged for their focus on addressing inefficiencies and putting in countless hours to fight bureaucratic issues.

Coinbase’s Commitment to Advancing Pro-Crypto Legislation

The invitation from Armstrong to former DOGE employees also indicates Coinbase’s growing involvement in politics. The company has publicly contributed to pro-crypto political action committees (PACs), including those supporting former President Donald Trump. Moreover, in 2024, Coinbase’s financial contributions totaled over $70 million which supports candidates and initiatives advocating cryptocurrency-friendly laws.

This decision comes after Coinbase added Chris LaCivita, Trump’s former campaign co-manager, to its advisory board. Armstrong’s willingness to hire DOGE staffers reflects an effort to attract professionals with a background in government efficiency and disruption. This is consistent with Coinbase’s strategy to innovate within the financial world, especially since the firm’s entry into the S&P 500 index is a landmark for crypto in traditional banking.

Related Reading | Tether-Backed Twenty One Capital Acquires $458.7M Bitcoin, Eyes New ATH

New CEO Nathan Chow Leads BitMart Toward Secure Crypto Exchange Evolution

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Key Takeaways:

  • BitMart’s CEO, Nathan Chow, brings deep financial expertise and a vision for secure, community-centric crypto infrastructure.
  • A hybrid wallet system, AI integration plans, and global expansion define BitMart’s third-generation platform.
  • Strategic partnerships, localized engagement, and rapid transaction capabilities differentiate BitMart in the crowded exchange space.

BitMart’s latest chapter opens with the appointment of Nathan (Nenter) Chow as CEO, a seasoned executive whose 17-year journey through traditional finance at JP Morgan and Mitsubishi UFJ is now guiding a transition into the frontier of blockchain technology.

Chow bases his philosophy on applying decentralization in an attempt to address inefficiencies that he has seen in institutional finance, in particular, border-crossing limitations and access barriers.

His transition into Web3 is an expression of his interest in creating systems that are not just faster and more transparent but also empowering for the general user.

This philosophy now guides BitMart in its strategic transformation. With Chow in charge, the exchange is adopting a user-centric strategy based on robust security mechanisms and worldwide access.

One of the building blocks of its approach is BitMart’s hybrid wallet system and multi-signature permission infrastructure−protections bolstered by partnerships with Fireblocks and Cobo.

These are more than technical enhancements in Chow’s estimation; they are the minimum in an operating environment where trust can shift overnight based on a single vulnerability.

BitMart Redefines Speed in Crypto Trading

BitMart is not satisfied to simply be another exchange. With its third-generation system able to process 80,000 orders per second for just 2 milliseconds of latency, it sets a technical benchmark seldom seen even in mature markets. Speed is not BitMart’s sole standout feature, though, that comes from combining technical performance with local engagement strategies.

Chow’s investment experience, especially his time spent at Animoca Ventures, comes into play here. His expertise in building cross-regional Web3 ecosystems is being realized through BitMart’s “Global Community Partner Program” and backing of close to 100 local events.

These are not one-time marketing activities, they are part of an intentional architecture in building a crypto firm into local crypto cultures from LATAM through MENA. The objective is not purely expansion but savvy, culturally sensitive enlargement.

Initiatives involving the “Stake to Vote” system even assign users an ownership share in governance, establishing a decentralized feedback loop and making community users stakeholders in the direction of the exchange.

Where AI Meets Blockchain

BitMart’s vision under Chow isn’t simply security and expansion, it’s being ahead of the curve. Chow laid out in a crypto firm research just what that means in its intersection of AI and blockchain.

The opportunity it sees is unprecedented. The crypto firm plans to take its place as an early innovator in that field, 2025 being the year in which AI-based analytics, automated trading strategies, and smart investment tools are launched.

These tools will provide users with real-time risk management and decision support while building a bridge between decentralized and traditional finance.

As they recognize trends in regulation, target growth markets, and invest in smart systems, Chow and BitMart are creating a new vision for what a crypto exchange can do, be secure, participatory, and predictive.

Related Reading | VeChain Breaks Out Toward $0.030 With Bullish Momentum, Is $0.05 the Next Target?

Game On: Coinbase Joins Riot Games as Official Crypto Exchange Partner

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Key Takeaways:

  • Coinbase named exclusive crypto exchange for LoL and VALORANT esports globally.
  • New match segments and tech-driven fan experiences to roll out across major tournaments.
  • Partnership blends Web3 innovation with live gaming ecosystems and viewer rewards.

Coinbase has officially partnered with Riot Games to become the exclusive cryptocurrency exchange and blockchain technology partner across two of the most popular global esports titles, League of Legends and VALORANT.

The partnership is one of the first to bring digital finance to the rapidly expanding competitive gaming market. With the partnership, Coinbase is not only entering international esports competitions but also integrating its Web3 vision into all aspects of fan engagement, from in-game information to digital rewards.

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The partnership will come into force with the Masters tournament in Toronto, where Coinbase will launch features aimed at bringing viewer experience to the next level.

Expect custom segments during the broadcast to delve deep into in-game economy, shedding light on how match currency and resource management work so audiences better grasp it.

These will come in the form of fresh analysis tools like the “Econ Report” for VALORANT and the “Gold Grind” for League of Legends, each offering a newfound technical perspective to the esports viewer.

Coinbase Revolutionizes Esports With Blockchain-Powered Fan Rewards

Coinbase is flipping conventional esports sponsorships on their head through integrating blockchain-powered activations within live streams and social media.

Viewers watching League of Legends’ World championship, Mid-Season Invitational, or VALORANT’s Champions Tour will have the opportunity to receive redeemable in-game content, such as icons and emotes, by taking part in virtual “drops.”

These temporary incentives provide another form of active engagement for fans to interact with the teams and tournaments they follow beyond merely watching. As part of the larger initiative, Coinbase will also sponsor special promotions, offering supporters opportunities to take part in winning trips to top esports competitions.

These initiatives illustrate how crypto and competitive gaming come together to build compelling incentive ecosystems fueled by digital possession and real-world utility. In the months ahead, the businesses will also examine how Web3 instruments will further enhance the esports fan experience.

Expanding Crypto’s Footprint in Global Sports

This is not Coinbase’s initial foray into sports, but it is likely its most immersive one yet. After previous deals with the NBA’s Golden State Warriors and Aston Martin’s Formula One team, the move is part of Coinbase’s further immersion into gaming natives.

Riot Games provides a digital-centric global platform well-suited to Coinbase’s mission to drive crypto mainstream adoption through technology, culture, and competition.

Anchoring itself at the center of the esports space, Coinbase is not merely sponsoring games, it’s setting the course for the future of digital finance and global entertainment to converge.

Related Reading | Cardano’s Major Update Could Shatter Solana’s Coinmarketcap Position, Coldware Touches $0.00625

Crypto Exchange for Russia’s Wealthiest Investors Set to Launch Soon

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  • Russia is set to launch the crypto exchange for “super-qualified investors” under a legal experiment.
  • Investors must have over 100 million rubles ($1.2M) or earn 50M rubles ($602K) yearly.
  • Final investor criteria are still under discussion and may change after further deliberation.

Russia is stepping deeper into the digital currency frontier. The nation’s finance ministry and central bank are preparing to launch a new cryptocurrency exchange meant only for a narrow class of wealthy investors. The announcement, made on April 23, was shared during a finance ministry meeting and confirmed through report from Interfax.

Finance Minister Anton Siluanov confirmed that the exchange would be built in partnership with the Bank of Russia and targeted at what he called “super-qualified investors.” He explained the move as part of efforts to pull crypto dealings into a transparent, regulated space. 

Together with the central bank, we will launch a crypto exchange for super-qualified investors. Crypto assets will be legalized, and crypto operations will be brought out of the shadows,” said Siluanov.

Siluanov also noted this platform won’t be operating within Russia’s domestic legal space but will function under an experimental legal framework that the government is rolling out.

Super-Investor Criteria Still Unclear

This initiative links directly to a proposal released by the Bank of Russia on March 12. That proposal outlined a three-year trial where certain investors would be allowed to buy and sell digital assets like Bitcoin. To qualify, an individual must hold over 100 million rubles (about $1.2 million) in assets or earn at least 50 million rubles (roughly $602,000) per year.

Although the central bank is opening a narrow window for crypto trading, it also plans to introduce penalties for those violating the trial’s conditions. These new rules reflect a significant shift from earlier restrictions, especially Russia’s 2021 law that banned using cryptocurrencies for payments.

The specific criteria for becoming a “super-qualified investor” are not yet final. Deputy Director Osman Kabaloev of the Finance Ministry’s financial policy department explained that discussions are ongoing.

Perhaps it will be in this format, or these indicators will be somehow adjusted in one direction or another – this is possible, I think there will be a wide range of discussions,” he remarked.

Russia Turns to Crypto Amid Sanctions

This development unfolds amidst growing international scrutiny. In response to Western sanctions and a recent freeze on the sanctioned Russian exchange Garantex by U.S. authorities and stablecoin issuer Tether, Kabaloev suggested on April 16 that Russia might need to develop its own stablecoin, that would operate independently from foreign-controlled infrastructure.

Meanwhile, on March 20, Evgeny Masharov of the Russian Civic Chamber proposed the idea of establishing a government-managed cryptocurrency fund. Under his plan, digital assets seized during criminal investigations would be repurposed to finance national projects.

The proceeds from the cryptocurrency fund can then be used for social, environmental and educational projects,” Masharov stated.

Alongside these domestic efforts, Russian oil companies are already leveraging digital currencies like Bitcoin and Ethereum in their trade with China and India. According to a Reuters report, they do this through intermediaries, allowing transactions to bypass traditional banking systems. This hidden adoption is quietly sustaining international trade amid growing sanctions.

Related Readings | Bitcoin Poised for Rally: Can $90,350 Hold as Support?

Crypto Exchange OKX Refutes Allegations of EU Scrutiny Over Bybit Hack

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  • OKX under EU investigation after Bybit claims hackers laundered $100M via Web3.
  • OKX denies EU probe, says it froze funds and blocked hackers’ addresses after Bybit hack.
  • EU regulators debate if MiCA rules should apply to OKX’s Web3 service amid concerns.

Crypto exchange OKX has publicly denied claims that its platform is under investigation by European regulatory bodies. OKX denied the claims of investigation following Bloomberg’s reporting that authorities scrutinized its Web3 wallet services for laundered funds linked to the $1.5 billion Bybit exchange breach.

EU Regulators Assess Web3 Compliance Under MiCA

Bloomberg’s March 11 report detailed how European regulators were allegedly investigating OKX’s Web3 service. The report claimed that hackers linked to the North Korean Lazarus Group had used OKX’s platform to launder approximately $100 million in funds stolen from Bybit. According to the sources cited by Bloomberg, the European Securities and Markets Authority (ESMA) and national regulators from Austria and Croatia were considering whether OKX’s Web3 platform should fall under the EU’s Markets in Crypto-Assets (MiCA) regulations.

However, OKX responded swiftly, calling the report misleading. The exchange stated it was not under investigation and rejected the claims that its platform was involved in illicit activities. OKX emphasized its commitment to helping Bybit track and implement security measures to block the hackers’ addresses and froze associated funds moving into its platform.

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Source; OKX

The crypto exchange stated that its wallet service operates as an aggregator through its swap function and self-custody wallet service, enabling user efficiency. After the Bybit hack, the company claims it took action by freezing brokered exchange funds on its centralized exchange (CEX) and developing system functionality to identify and prevent hackers’ access to decentralized exchange (DEX) and wallet services.

National authorities from Croatia and Austria claim that OKX should follow EU financial requirements for Web3 services because these services merge with their centralized trading platform. Some stakeholders proposed that MiCA should not control decentralized services, while others advocated for MiCA to extend its authority to all services. Malta, which previously granted the crypto exchange a MiCA pre-authorization, is also reviewing whether the exchange remains compliant.

Crypto exchange OKX Rejects Money Laundering Allegations

Bybit CEO Ben Zhou previously alleged that hackers laundered approximately $100 million through OKX’s Web3 wallet service following the exploit on Bybit’s platform. In its response, OKX also refuted accusations from Bybit that it had been complicit in laundering stolen funds.

In a social media statement, OKX Global Chief Marketing Officer Haider Rafique reaffirmed that the company has been transparent with regulators and does not facilitate illicit activities. He described any suggestion that the Crypto exchange was complicit in laundering stolen funds as “preposterous.”

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Source; Haider

The exchange asserted that Bybit’s statements were spreading misinformation about their role in the security vulnerability. OKX stated that the ongoing security issues and vulnerabilities were due to Bybit’s lack of security measures and not any failure on the crypto exchange’s part. The company clarified that its platform had reacted by freezing the funds involved in the hack and developing new features to block hackers’ addresses from accessing its services.

Bybit’s CEO Ben Zhou reported that over $200 million of the $1.46 billion stolen from the exchange has become untraceable due to the use of mixing services. About 20% of the stolen money was obtained from Ethereum through THORChain before being converted into Bitcoin despite the platform receiving criticism for failing to stop DPRK-backed hackers. Zhou reported that 77% of the stolen digital currencies can still be tracked across multiple platforms despite recent losses of the total stolen funds.

Crypto Exchanges Eye IPOs: Gemini & Kraken Lead the Way- Report

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Key Takeaways:

  • Gemini is preparing for an IPO with support from Goldman Sachs and Citigroup.
  • Kraken is also considering going public and benefiting from a favorable regulatory shift.
  • The crypto industry sees a rise in IPO activity, with multiple firms planning listings.

Gemini, the crypto exchange led by the Winklevoss twins, has confidentially filed for an initial public offering. Sources familiar with the matter indicate that the company is collaborating with Goldman Sachs and Citigroup to facilitate the process. If all goes as planned, the listing could take place before the end of the year.

The development comes after regulatory issues that had forced Gemini to settle with a $5 million penalty with the Commodity Futures Trading Commission. The firm has also just concluded a Securities and Exchange Commission probe. The regulatory settlements were hinted at by Cameron Winklevoss in a social media post earlier in the year when he insinuated that the path to an IPO was smoothing out.

Despite these developments, negotiations on the IPO are ongoing. No decision has been finalized yet, and officials from the involved finance houses have refused to comment. A successful public listing by Gemini would be a significant milestone for the crypto sector.

Kraken Eyes a Public Debut

Another major player in the sector, Kraken, is also preparing for a stock market listing. The exchange, better known as Payward Inc., is to float in early 2025. Insiders say that the company has been doing initial groundwork in preparation for making this move, though no decisions have yet been finalized.

Kraken has been transparent in its performance financially and has just reported a revenue hike to $1.5 billion in 2024. The company’s earnings before interest, taxes, depreciation, and amortization were at $380 million. Its new markets and new services have been responsible for that.

The company’s IPO plans had previously been delayed due to regulatory setbacks under President Joe Biden. However, with a shift in regulatory atmosphere under President Donald Trump, momentum has been gained by Kraken.

The firm settled one of its cases with the SEC and had a second one dropped without charges. The more positive regulatory stance towards digital assets has encouraged crypto firms like Kraken and others to revive their public listing plans.

Growing Trend of Crypto IPOs

Gemini and Kraken are not alone in their quest for public listing. Other crypto firms, such as stablecoin issuer Circle and digital asset custodian BitGo, are also eyeing IPOs. Exchanges like Bullish have also stated that they are interested in going public.

The biggest American crypto exchange, Coinbase, became a public company in 2021. The industry has since faced more scrutiny, and most firms have delayed or dropped listing plans. The recent regulatory shift has renewed enthusiasm for public offering.

Related Reading | Coinbase CEO Brian Armstrong Plans to Hire 1,000 Employees for Crypto Growth in 2025

Crypto Exchanges Should Halt Withdrawals Post-Hack, Binance Founder CZ Strongly Recommends

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  • CZ highlights securing private keys and backups as essential for crypto safety.
  • Binance invests heavily in security to protect user funds from sophisticated threats.
  • CZ recommends using trusted exchanges and proper backups to safeguard crypto assets.

The hack of cryptocurrency exchange Bybit by Lazarus Group of North Korea, which resulted in the theft of $1.4 billion worth of Ethereum, substantially heightened security concerns in the cryptocurrency industry. Binance founder Changpeng Zhao (CZ) expressed growing concern about the rising number of crypto breaches after Bybit suffered extensive theft from North Korean hackers.

Through his statements, CZ highlighted the requirement for secure measures within space and the necessity for prompt response and openness after an incident.

CZ’s Security Recommendations Amidst Crypto Breaches

Following the Bybit incident CZ utilized social media platforms to emphasize exchange protection against hacking events. CZ pointed out the alarming rise of multi-signature system exploitation in the recent Bybit hack alongside WazirX and Phemex. Hackers managed to manipulate multi-signature systems to permit unauthorized financial transactions. 

The vulnerabilities in these incidents affect the multi-signature “cold storage” systems, which were created to offer additional security for crypto assets. The researchers suggest hackers succeeded through server-side and device infiltrations despite different exchanges using different security providers.

Blockchain expert ZachXBT traced the Bybit hack to the North Korean Lazarus Group after finding wallet transaction trails connected to the Phemex exploit in January, which led to $85 million in losses. Arkham Intelligence also provided evidence that showed test transactions and transaction patterns leading to the breach.

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Source: ZachXBT

CZ has urged exchanges to pause withdrawals immediately after detecting a breach. According to the expert, this preemptive security procedure gives exchanges sufficient time to investigate attacks fully and fix security issues before they reenable operations. CZ drew from his own experience with the Binance hack in 2019 where pausing withdrawals helped them recover user confidence. 

Users deposited more money than they withdrew after Binance resumed operations following its initial withdrawal suspension. According to CZ, exchanges must dedicate sufficient time to securing their systems before reopening. Withdrawal suspensions function both to prevent additional financial losses and to safeguard investor assets over the long term.

Bybit’s Transparent Approach to the Crisis

Bybit CEO Ben Zhou openly disclosed the breach, and established users could rest assured that their internal Bybit systems would remain untouched. The Lazarus Group attacked Bybit’s Ethereum cold wallet however the platform managed to run its core operations and withdrawals without problems.

Zhou said the external security breach did not affect the internal systems, so withdrawal functions continued without interruption. Industry leaders, including CZ, supported Zhou’s decision to continue operations as normal throughout the crisis.

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Source: X

During the crisis, Zhou expressed gratitude toward Binance and other partners for demonstrating their combined defense against threats and solid financial position even after the major attack.

Crypto Exchange Bybit Ends Two-Year Compliance Struggle with France’s AMF

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  • Bybit resolves compliance issues with France’s AMF after two years of efforts.
  • Bybit aims for a MiCA license to expand its services across the European Union.
  • Despite progress in France, Bybit still faces regulatory challenges in India and Malaysia.

Crypto exchange Bybit has officially been removed from its status on France’s financial regulator, the Autorité des Marchés Financiers (AMF) blacklists. On February 14, 2025 the exchange completed a two-year effort to restore compliance standards after the blacklist addition took place. The exchange completed a name clearance process suggesting its re-entry into the French market.

The AMF issued public warnings about Bybit running operations in France without appropriate authorization. In 2022, the regulator issued an alert about Bybit, recommending potential users exercise caution when using its services. Since its initial listing the company has established strong cooperation with the AMF to respond to and resolve regulatory issues.

Plans for MiCA License and European Expansion

The removal of Bybit from blacklists represents a major achievement for the company as it progresses into European markets. The exchange continues its efforts toward acquiring Markets in Crypto Assets (MiCA) licensing to allow operations in every member state of the European Economic Area’s 30 countries. Exchange companies actively pursue the MiCA regulation because it establishes a standardized regulatory approach for cryptocurrency operations within the European Union region.

CEO Ben Zhou of Bybit demonstrated confidence in the company’s ongoing success through a social media post. Zhou stated that the exchange continually cooperates with European regulatory bodies to fulfill compliance requirements. The acquisition of a MiCA license by Bybit would allow the platform to operate secured crypto services throughout Europe and bolster its market foothold in quickly developing regions.

Ongoing Regulatory Challenges for Bybit

The exchange experiences ongoing regulatory obstacles across different countries, although its performance remains positive in France. For instance, Bybit faced a $1.06 million penalty in India after breaking money laundering laws and Malaysian officials forced Bybit to stop trading in their country. However, Bybit demonstrates its commitment to regulatory compliance through its worldwide efforts to overcome crypto market regulations.

Bybit’s commitment to working with regulators in various jurisdictions, including France, suggests that the company is focused on long-term compliance and growth. Bybit’s regulatory journey reflects the broader trend within the crypto industry, where exchanges increasingly align with regulatory standards to ensure stability and expand their services across global markets.

Crypto Exchange Phemex Faces $70 Million Exploit Across Multiple Blockchains

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  • Hackers stole $70M from Phemex hot wallets, impacting Ethereum, Solana, XRP, and Bitcoin.
  • Phemex suspended withdrawals after detecting $29M in suspicious blockchain outflows.
  • Cold wallets remain secure as Phemex plans USDT and USDC withdrawal restoration.

Singapore-based crypto exchange Phemex launched an investigation into an exploit that stole roughly $70 million from its hot wallets. On January 23, blockchain analytics company PeckShield verified the breach and detailed large unauthorized transactions exceeding $69.1 million across the Ethereum, Solana, XRP, and Bitcoin blockchains.

The hackers are suspected to be North Korean, and the attack was prompt as they traded the stolen Tether (USDT) and USD Coin (USDC) for Ethereum (ETH) to avoid blacklisting measures.

Hack Targets Ethereum, Solana, XRP, and Bitcoin Wallets

PeckShield revealed on January 24 that Phemex’s Ethereum, Solana, XRP, and Bitcoin wallets were hacked to transfer funds. Ethereum alone contributed to $20 million of stolen assets, including ETH and stablecoins. Solana had $17 million in losses, while XRP and Bitcoin losses were $13 million and $5.3 million, respectively.

Cyvers discovered that hackers performed 125 suspicious transactions throughout 11 distinct blockchain networks. Hackers promptly transformed their stolen Tether (USDT) and USD Coin (USDC) into Ethereum to prevent asset freezing while using decentralized networks for laundering purposes.

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Crypto Exchange Phemex Faces $70 Million Exploit Across Multiple Blockchains 7

Immediate Response and User Reassurance

Phemex CEO Federico Variola confirmed that the exchange’s cold wallets were not compromised and are open to public inspection. The withdrawal of stablecoins such as USDT and USDC are being progressively restored, and the BTC withdrawal services will be enabled soon.

The exchange halted all withdrawal requests while performing a security audit to improve its wallet features. Variola pointed out that the security team is manually handling withdrawal requests to avoid further risks and errors in the course of the recovery process.

Phemex is also developing a compensation plan and will provide the details to its users after the investigation. The exchange apologized and renewed its promise to maintain a reliable trading platform in response to the disruption.

Rising Trend in Crypto Hacks

The Phemex breach depicts how cryptocurrency thefts are becoming more common in the industry. According to Cyvers, crypto theft occurred at a rate of more than $2.3 billion annually in 2024, which is 40% higher than in 2023. Furthermore, hackers affiliated with North Korean cyber criminals mainly attack centralized exchanges to exploit private key management and wallet structure.

Experts have pointed out that strong security procedures, including offline storage of private keys and live monitoring systems, are necessary tools against evolving online dangers. Off-chain transaction validation protocols function to identify possible blockchain transaction exploits before their implementation through pre-execution simulation and verification of transactions.