Phemex Reports $85 Million Crypto Theft, Enhances Security

Phemex, a prominent derivative exchange, offers a fast and user-friendly platform for trading cryptocurrencies. The exchange, founded in 2019 by former executives from Morgan Stanley, provides advanced trading features and robust security measures to ensure the safety of user funds and data. Phemex supports over 350 cryptocurrencies and offers various trading options, including spot, contract, P2P trading, and over-the-counter (OTC) trading. The platform's user-friendly interface, educational resources, and automated trading tools make it suitable for both beginners and experienced traders.

Phemex's key features include low fees for all traders, an advanced derivatives market, various trading options, and a high-performance trading engine capable of handling 300,000 transactions per second. The platform also offers deep liquidity, a trading interface with advanced order types, and secure multisignature cold wallet storage for asset protection. Additionally, Phemex provides a mobile app, trading bots, earn and launchpad features, and a Web3 platform for exploring the decentralized ecosystem.

Despite its strong security features, Phemex experienced a security breach in January 2025, where hackers allegedly stole about $85 million in cryptocurrency. The exchange has since implemented new security measures and is working with external security bodies to enhance its defenses. Phemex is registered as a Money Services Business (MSB) with FinCEN and operates legally in jurisdictions where it is supported. The company requires mandatory KYC verification for all users to ensure account security and compliance.

Phemex offers competitive fees for spot and contract trading, with a tiered fee structure that provides discounts based on the trader's 30-day trading volume. The platform also charges funding fees between long and short positions every 8 hours for perpetual contracts. Phemex's withdrawal limits and times depend on the crypto assets and the blockchain network, with minimum withdrawal limits ranging from 0.00011 BTC to 10 USDT/BNB, depending on the network.

Phemex's trading bots include futures grid, futures martingale, spot grid, and signal trading, which help users automatically execute trades based on predetermined trading strategies. The platform also offers multiple products to help investors earn passive income, such as the launchpad, Phemex Savings, Phemex Launchpool, prediction markets, and the exchange’s Learn & Earn program. Phemex's Web3 platform, Phemexia, provides various products for traders who want to explore the Web3 ecosystem, including the Phemex Soul Pass (PSP), Phemex Token, PT staking, lending protocol, and Phemex Pulse.

Phemex's security measures include multisig cold wallets, SSL encryption, 2FA, passkeys, anti-phishing codes, withdrawal address whitelist, an insurance fund, and Proof of Reserves. The platform encourages traders to activate these security features to improve account security. Phemex's customer support team interacts with users through live chat, social media, and email, although some users have reported unresponsiveness and delays in receiving support.

Phemex is not available in the United States, but it is not illegal. The exchange's products and services are not accessible in the US, and users cannot use a VPN to trade on the platform due to its mandatory KYC policy. Phemex is restricted in several countries, including the United States, Cuba, Haiti, Nicaragua, Venezuela, the United Kingdom, and other countries in Asia and Africa. Investors in restricted regions cannot trade crypto on the exchange, so it is essential to read Phemex’s Terms of Service to determine if your country is restricted.

In summary, Phemex is a legitimate and secure cryptocurrency exchange that offers a range of trading options and features for both beginners and experienced traders. The platform's competitive fees, advanced trading tools, and robust security measures make it a popular choice for crypto investors. However, the recent security breach and high funding rates may be a concern for some users. Phemex's customer support team could also improve its responsiveness and efficiency in addressing user complaints and issues. Overall, Phemex is a reliable and user-friendly exchange for trading cryptocurrencies, but users should be aware of its restrictions and limitations in certain regions.