Phemex, a global cryptocurrency exchange spread across the US, UK and Canada, announced that it will temporarily suspend withdrawals to address concerns regarding wallet security. In the announcement, the company assured users that trading services will not be affected and that trading operations will continue as usual.
Phemex services have been suspended due to emergency inspection of hot wallets
In the announcement from the cryptocurrency exchange’s official The company also apologized for the inconvenience resulting from the temporary cessation of services provided.
Phemex CEO Federico Variola also addressed the issue on his X account. He explained in his tweet that there was an issue with one of their hot wallets, which led to this suspension of services protocol being initiated. He also confirmed that other offline wallets or cold wallets are safe and secure. The integrity of offline wallets or online cold wallets can be verified by a connection Presented by the CEO. It promises to keep users updated as the investigation continues and unfolds.
The compensation plan will be rolled out soon
in advertisement Presented by the company, the company emphasized that this step also aims to ensure that the company builds a platform that users can trust and rely on. The company is expected to come up with a compensation plan as well. No further details have been provided yet regarding the compensation plan. Phemex also confirmed that services will be restored once the investigation is completed and thanked users for their understanding.
This step of suspending withdrawals is considered a proactive step that the stock exchange decided to impose. Such steps indicate that the company is taking action to build a safe and transparent environment for users, and this is usually met with optimism within the community.
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