BitGo said recent outgoing transfers from Unocoin’s wallet used keys controlled by the exchange and bypassed BitGo’s infrastructure, putting signing authority at the center of the account.
BitGo said the signatures came from Unocoin’s user key and backup key. The wallet’s self-custody setup left Unocoin with two of three signing keys, while BitGo held the remaining key, the custodian said.
BitGo said its key was not involved and the transfers reached the blockchain without using its systems. The company said it froze Unocoin’s account on Nov. 6 and the measure performed as expected.
The arrangement puts control at the center of BitGo’s account: the custodian says Unocoin-held keys authorized the transfers, while its own key and systems were not involved in the activity. BitGo referred questions about Unocoin customers’ funds to the exchange and said its other customers were unaffected.
Unocoin said it was investigating possible misuse of the wallet’s backup-access mechanism.
