Freeze measures have taken effect as expected, Unocoin says multisig wallet backup mechanism may have been exploited

Odaily reports: According to Unocoin monitoring, Unocoin states it has obtained the necessary information and clarification from custodian service provider BitGo. BitGo has frozen its enterprise account in accordance with Unocoin's instructions on November 6, and the freeze measures now appear to have taken effect as expected. Unocoin stated that the relevant transactions were signed and broadcast directly externally on-chain, without passing through the BitGo platform, and without BitGo's involvement. BitGo's multisignature wallet has a backup mechanism to allow fund withdrawal even when BitGo is unavailable, and this backup mechanism appears to have been exploited. Unocoin will continue to investigate the specific mechanism, the loss of crypto assets, and the information privacy situation, and plans to restore services after the investigation is completed. Previously, after discovering suspicious and unauthorized activity on November 6, Unocoin requested BitGo and Fireblocks to immediately freeze its enterprise account, at which time no loss of crypto assets was found. On November 12, Unocoin stated that an ETH address in its BitGo wallet used to fund ERC-20 tokens showed an outgoing transfer, and it had reported this to BitGo; because the account remained frozen and the wallet uses change addresses, the transaction situation could not be fully reconstructed at that time.