Phemex, a global cryptocurrency exchange prevalent in US, UK and Canada announced that it is temporarily suspending withdrawals to address concerns over wallet security. The company in the announcement assured the users that the trading services will remain unaffected and business operation will be continuing as usual.
Phemex Services Suspended for Emergency Inspection of Hot Wallets
In the announcement made from the official X page of the cryptocurrency exchange, Phemex stated that the services have been paused as a part of emergency inspection which will led to strengthening of wallet services for the users. The company also apologized for the inconvenience caused due to the paused imposed on the offered services.
Phemex CEO, Federico Variola, also addressed the issue on his X account. In his tweet, he explained that there has been an issue with one of their hot wallets due to which this suspension of services protocol has been initiated. He also assured that the other wallets which offline wallets or the cold wallets, are safe and secure. The safety of the offline wallets or the cold wallets can be verified online with a link that the CEO provided. He promises to keep the users updated as the investigation continues to proceed and unfold.
Compensation Plan to be Rolled Out Soon
In the announcement made by the company, the company emphasized that is move is also to ensure that the company builds a platform the users can trust and rely on. The company is expected to come out with a compensation plan as well. No further details have been made available as of now regarding the compensation plan. Phemex has also assured that the services will be restored as soon as the investigation is completed and thanked the users for their understanding.
This step to suspend withdrawals is a proactive step that the exchange decided to impose. Such steps indicate that the company is taking actions to build a safe and transparent environment for the users, and this is usually met with optimism within the community.
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