BitGo has denied involvement in unauthorized wallet transfers reported by Indian cryptocurrency exchange Unocoin. The company said the transactions were signed using two keys controlled by Unocoin, without requiring access to its own key.
In a November 13 statement on X, BitGo said its systems and other clients were unaffected. It directed questions about possible losses to the Indian exchange.
Unocoin Reviews Two-Key Wallet Security
Unocoin uses a 2-of-3 wallet arrangement, meaning two signatures are required to authorize transactions. The exchange holds two keys, while BitGo controls the third.
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BitGo said its key was not used in the disputed transfers. Its documentation also describes how clients can recover funds without relying on BitGo’s services.
Unocoin suspects attackers exploited its backup key arrangement. The exchange is investigating possible cryptocurrency losses and exposure of private information.
Exchange Suspends Services After Suspicious Activity
Unocoin detected suspicious activity on November 6 and requested asset freezes from Fireblocks and BitGo. Further unauthorized activity on November 9 prompted the exchange to suspend its services.
The exchange said more than 90% of customer cryptocurrency remained in cold storage. It expects rebuilding its infrastructure to take four to five working days, followed by security checks.
Neither company has disclosed the total losses or identified those responsible.
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