Indian cryptocurrency exchange Unocoin has maintained the suspension of deposits and withdrawals while it investigates a series of abnormal transfers linked to wallets managed through custodian BitGo. The company first detected unauthorized activity on November 6 and paused all platform services the following Monday after identifying further movements.

According to Unocoin, BitGo froze the exchange’s enterprise account on November 6 at the request of Unocoin. The freeze remains in place and functioned as designed. However, the transactions under review were signed and broadcast on-chain outside BitGo’s systems, meaning they did not pass through the custodian’s platform.

Recovery Feature Under Scrutiny

Unocoin’s review centers on a recovery mechanism built into BitGo’s multisignature wallets. The feature is designed to allow wallet holders to regain access to funds if BitGo becomes unavailable. The exchange believes this backup function may have been used improperly.

Unocoin has stated that it has not yet established how the transfers were executed or whether any digital assets were lost. In a Thursday update, the company reported outgoing transactions from an Ethereum address associated with its BitGo wallet infrastructure and confirmed that its servers had been compromised.

BitGo provided the information and explanations requested by Unocoin. The custodian confirmed the account freeze and its continued effectiveness. The investigation remains ongoing, and Unocoin has not set a date for the resumption of deposit and withdrawal services.

Timeline of Events

Unauthorized activity was first identified on November 6. After detecting additional activity, Unocoin suspended platform services on the following Monday. By Thursday the exchange publicly disclosed the Ethereum outflows and the compromise of its servers. On Friday it reiterated that the BitGo freeze was operating correctly while the external transfers continued to form the core of the inquiry.

Separately, India’s cybersecurity agency issued a warning on November 5 describing an AI-assisted campaign aimed at crypto exchanges and other financial firms. No link between that advisory and Unocoin’s incident has been established.

Unocoin continues to assess the possible impact on assets and data while services remain paused. The company has not released further details on the scale of any potential losses or the precise method by which the recovery feature may have been accessed.