Conclusion

The Phemex exploit was not just another hack—it was a highly coordinated, cross-chain operation that exposed critical vulnerabilities across Ethereum, Layer 2s, and Solana. The attackers moved with precision and speed, draining assets and leveraging DEX aggregators, cross-chain bridges, and DeFi protocols to obscure their tracks, making fund recovery an uphill battle.

This incident raises urgent questions about security in the multichain era. Are smart contract audits and protocol security checks enough? With exploiters targeting CEX hot wallets and rapidly dispersing funds across multiple chains, are centralized exchanges truly prepared for multichain threats?

As DeFi and CEXs become increasingly interconnected, security strategies must go beyond isolated audits. Real-time monitoring, on-chain surveillance, and proactive exploit detection will be critical in preventing the next major heist.

Blockscope: Advancing Blockchain Security

At Blockscope, we provide cutting-edge blockchain forensics and real-time monitoring tools, enabling businesses to protect their assets and assisting law enforcement agencies in tracking illicit activities and apprehending bad actors. Our advanced analytics enhance security across DeFi and CEX ecosystems, making the blockchain space safer for all stakeholders.

The Phemex exploit serves as a wake-up call—as blockchain technology evolves, so must our security measures. The question is no longer if another attack will happen, but when—and whether the industry is ready to stop it.

The investigation utilized a suite of advanced forensic tools from Blockscope to meticulously trace and analyze the attack. Key findings include:

• Transaction Decoder: Deconstructed transactions to analyze the exploiter’s multichain movements, sequence of events, and asset bridging using protocols like Stargate.

• Wallet Profiler: Identified attacker wallets, stolen assets, and suspicious transactions across multiple networks.

• Tracer Tool: Tracked stolen tokens, including ERC-20, stablecoins, and native assets, as they moved across wallets and DeFi protocols.

• Cohort Analyzer: Mapped clusters of associated wallets, uncovering the exploiter’s network and operational footprint on Ethereum.

Investigation by: Tushar Tiwari, Analyst @ Blockscope

For more information, please reach out to us at [email protected]

Disclaimer: Best Effort Investigation

This investigation and its findings represent our best effort based on the information available at the time. However, please be aware of the following limitations:

• The data used in this investigation may contain inaccuracies, omissions, or errors.

• Information sources may be incomplete or subject to change.

• New evidence may emerge that could alter the conclusions.

• Analysis and interpretations are based on current understanding and may evolve.

We have made every reasonable attempt to ensure accuracy, but cannot guarantee that all information is entirely correct or complete. This report should be considered a snapshot of our current knowledge and understanding, subject to revision as new information becomes available.