The Indian exchange says no user funds have been lost, but users remain shut out while BitGo investigates suspicious Ethereum transfers
Indian crypto exchange Unocoin has disclosed outgoing Ethereum transactions from a BitGo wallet address linked to its operations. The discovery comes while its users are still locked out of their accounts.
The exchange says it escalated the matter to BitGo, which has opened its own investigation. Unocoin maintains that no user funds have been lost.
A week of escalating problems
The trouble started on November 6, 2026. That day, Unocoin detected unauthorized access to its servers and began what it called “precautionary measures” to protect customer assets.
Those measures included freezing its enterprise accounts at two custodians. The BitGo account was frozen at 11:24 UTC and the Fireblocks account followed at 11:29 UTC.
Further unauthorized activity led Unocoin to suspend all user logins and services on November 9. As of November 12, users remained locked out.
Then came the latest wrinkle. Unocoin said it spotted the outgoing ETH transactions on Thursday and immediately raised them with BitGo. Those transactions were flagged on November 12, according to the research findings, and BitGo’s probe is now underway.
The exchange has not said how much ETH moved or where it went.
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What Unocoin says, and what the chain shows
Unocoin’s central claim is that customer money is safe. The exchange says more than 90% of user holdings sit in cold storage.
Unocoin says it is rebuilding its server infrastructure from scratch. That process is expected to take 4-5 business days.
Outside observers have found reasons for caution. Blockchain analytics firm Arkham Intelligence showed approximately 81,000 addresses associated with Unocoin carrying a combined balance of $0 as of November 12.
The exchange’s website also returned a 504 error on November 12.
Unocoin has yet to release a comprehensive incident report. It also hasn’t given a firm date for when users can log back in and trade.
What this means for users and the market
The more than 90% cold storage figure is doing a lot of heavy lifting in Unocoin’s messaging. The natural follow-up is what happened to the remaining slice held in hot or custodial wallets. The flagged BitGo ETH transactions sit squarely in that question, and BitGo’s investigation will likely shape how credible the “no funds lost” statement looks in hindsight.
Unocoin leaned on BitGo and Fireblocks, two institutional-grade providers, and froze both accounts within minutes of detecting the intrusion. If ETH still moved from a BitGo-linked address afterward, the answer could point to compromised credentials, a gap in the freeze, or activity that predates it.
Key things to watch in the coming days: whether Unocoin hits its 4-5 business day rebuild window, what BitGo’s investigation finds about the outgoing ETH, and whether the exchange publishes a full incident report with verifiable reserve data.
Disclosure: This article was edited by John Chen. For more information on how we create and review content, see our Editorial Policy.