Unocoin says funds left a frozen BitGo wallet via a backup key path
- Severity
- High
- Sources
- 1
What happened
Unocoin says BitGo and Fireblocks confirmed freezes on 6 November (11:29 and 11:24 UTC), with no losses found at that point, but funds left a BitGo wallet on 13 November. It believes BitGo's backup key recovery path was used, while BitGo's Wallet Recovery Wizard documentation says such transactions bypass client policies. Unocoin has not disclosed losses or who held the key, and says over 90% of customer crypto is in cold storage. It traced outflows to an Ethereum address used to fund ERC-20 tokens, and says BitGo's change-address setup complicates reconstructing transaction history. Arkham data showed about 80,986 Unocoin-linked addresses at zero value. The article also draws a parallel to the WazirX and Liminal dispute after the $234 million hack in July 2024, and notes BitGo's Q3 net income of $44.1 million.
For experienced traders · Written by AI from 1 source · Wrong?
What to do
- Watch for Unocoin's confirmation of the total amount lost and the cause of the backup key use.
- Watch for any BitGo response on how its recovery path was reached.
Written by AI from the sources, checked against them