Unocoin: BitGo enterprise account freeze has taken effect as expected, multisig wallet backup mechanism suspected of being exploited.

BlockBeats news, November 13 - Indian crypto trading platform Unocoin released an update stating that it has obtained the necessary information and instructions from custodian service provider BitGo. BitGo has frozen its enterprise account as per the platform's instructions on November 6, and the freezing measures appear to have taken effect as expected. Unocoin stated that the relevant transactions were directly signed and broadcast externally on-chain, without going through the BitGo platform, and without BitGo's involvement. The BitGo multi-signature wallet has a backup mechanism to allow fund withdrawal even when BitGo is unavailable, and this backup mechanism appears to have been exploited. Unocoin said it will continue to investigate the specific mechanism, the loss of crypto assets, and information privacy, and will resume services after completing the investigation.

Previously, after discovering suspicious and unauthorized activity on November 6, Unocoin had requested BitGo and Fireblocks to immediately freeze its enterprise accounts, at which time no loss of crypto assets was found. The platform stated on November 12 that it discovered an outbound transfer from an ETH address in its BitGo wallet used to fund ERC-20 tokens, and had reported it to BitGo, but due to the account still being frozen and the wallet using change addresses, it was unable to fully reconstruct the transaction situation at that time.