Unocoin Keeps Services Suspended Amid BitGo Wallet Probe

Unocoin kept deposits, withdrawals, trading and user logins suspended on November 13 as it investigated unauthorized transfers from wallet infrastructure linked to BitGo. The Indian cryptocurrency exchange said the disputed transactions were signed and broadcast outside BitGo’s platform, even though BitGo had frozen Unocoin’s enterprise account at the exchange’s request on November 6.

In an update on November 13, Unocoin said the freeze had functioned as intended and that it had received information and clarifications from BitGo. The exchange said the transfers under review were authorized outside BitGo’s system. The account does not establish how the transactions were signed or whether any cryptocurrency was lost.

Unocoin suspects a recovery mechanism associated with its BitGo multisignature wallet may have been misused. The feature is intended to allow wallet holders to access funds if BitGo becomes unavailable. Unocoin said it had not determined how access occurred or which credentials were involved. The suspected route remains under investigation and does not establish that BitGo’s platform or account freeze failed.

The exchange first detected unauthorized activity on its...