Founded in 2013, Bengaluru-based Unocoin ranks among India’s earliest cryptocurrency exchanges. Its latest security troubles have raised uncomfortable questions about custody, infrastructure vulnerabilities, and the reliability of publicly tracked wallet balances.

The trouble began Nov. 6, when Unocoin detected unauthorized activity and requested freezes on its Fireblocks and Bitgo enterprise accounts at 11:24 UTC and 11:29 UTC, respectively. Both custody providers reportedly confirmed the restrictions, with no losses identified at that stage.

Three days later, additional suspicious activity prompted Unocoin to publish an update and suspend services and disable customer logins. The company acknowledged compromised infrastructure but reiterated that “no cryptocurrency funds have been lost.”

Did Unocoin Lose Customer Funds or Is Arkham Missing the Bigger Picture?

On Thursday, blockchain monitoring account Onchain Lens highlighted an unusual reading on Arkham Intelligence’s Unocoin dashboard. Approximately 80,986 attributed addresses displayed a collective valuation of $0, accompanied by the message “No assets found.” Bitcoin.com News can confirm that Arkham’s dashboard shows the Unocoin entity with nearly 81,000 empty wallets.

The observation immediately invited speculation about a possible exchange drain. However, Arkham’s address attribution does not necessarily represent Unocoin’s complete custody arrangements, particularly if assets were transferred to previously unidentified wallets.

Several explanations remain plausible. Funds could have been relocated into untracked cold-storage addresses, transferred defensively via a white hat hacker following the intrusion, or moved without authorization. The available evidence does not establish which scenario occurred.

Crucially, a zero balance across labeled addresses does not demonstrate that 81,000 customer wallets were emptied by malicious attackers. Furthermore, a look at the historical data shows that the wallets had only collectively held hundreds of dollars’ worth of crypto at most over the last month, with a three-month peak just above $250,000.

What Has Unocoin Confirmed About the Bitgo Transactions?

Unocoin’s Nov. 12 security update introduced another unresolved complication. Investigators identified outgoing transactions from an Ethereum address associated with its Bitgo wallet infrastructure, previously used to fund ERC-20 token activity.

The exchange escalated those transactions to the crypto custodian Bitgo for investigation. However, frozen enterprise accounts and limited visibility into Bitgo’s change-address mechanisms have complicated efforts to reconstruct the complete movement of assets.

Unocoin says it is rebuilding its server infrastructure, a process expected to require four to five working days. Meanwhile, customer logins, trading, and withdrawals reportedly remain unavailable, with website visitors also reporting Cloudflare 504 Gateway Timeout errors.

The episode follows previous security incidents involving Indian exchanges, including Wazirx and CoinDCX, making independent verification particularly important.

For now, the essential questions concern transaction authorization, confirmed custody balances, possible data exposure, and service restoration. Until investigators reconcile Unocoin’s holdings with onchain evidence, neither the company’s assurances nor Arkham’s empty dashboard can conclusively establish the financial outcome.

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