Tech

BingX Crypto Exchange Suffers $43M Hot Wallet Hack, Describes Loss as Manageable

Leading Singapore-based cryptocurrency exchange BingX witnessed a hack attack on its hot wallet, leading to significant fund loss.

PeckShield security experts said the hackers stole around $43 million in cryptocurrencies, while BingX downplayed the Loss, calling it “minor and manageable.”

Peckshield mentioned that the perpetrators moved the stolen funds in several batches.

BingX Responds to Hot Wallet Hack: Withdrawals Paused, Compensation Plan for Users Announced

Bing’s Chief Product Officer, Vicien Lin, provided more details about the recent incident. She explained that BingX’s team discovered it early on September 20, around 4:00 a.m. Singapore time.

At that time, the team noticed some unusual activity on the network, which they suspected was due to a hacker attack targeting the exchange’s hot wallet. Following the security breach, Bingx temporarily paused Withdrawals as part of its emergency response to prevent further losses.

Lin reassured that the damage was under control, with only a small amount of assets lost during the incident.

BingX announced plans to resume withdrawals within the next 24 hours, meaning users will soon be able to access their funds after the temporary pause. In addition, the exchange promised to introduce a compensation plan for affected users to make up for any losses they may have experienced due to the hack.

The crypto exchange aims to restore trust by addressing the issue quickly and supporting those impacted. It reassured users that the losses from the hack have been minimal and are fully under control.

Further, BingX revealed that most assets are stored in cold wallets offline and are much harder to hack. The breach affected only a tiny portion of the funds in their hot wallet.

According to the exchange, the situation is manageable, and it can confidently cover the losses.

BingX’s Community Questions Transparency Amid “Wallet Maintenance” Notice

Initially, Blockchain security firm PeckShield reported on X that it detected a suspicious significant fund outflow from the BingX exchange.

 It noticed an outflow of over $13.5 million, alerting Bingx to the potential security issues and prompting further investigation.

As the situation developed, PeckShield updated its estimate, raising the figure to $26.7 million. This revision indicated a more extensive breach than first thought.

Meanwhile, analytics platform Lookonchain corroborated these findings, reporting that the estimated losses exceeded $26 million.

On September 20, BingX informed its users that it was conducting temporary maintenance on its wallet system. This announcement indicated that there may be delays in deposits and withdrawals.

In response to BingX’s communication, Harrison Leggio, the co-founder of the crypto startup g8keep, expressed his skepticism in an X post. He criticized the exchange’s words, questioning whether the situation was about maintenance or whether user funds were being drained.

His comments highlighted a growing frustration in the crypto community regarding transparency and trust in centralized exchanges. Leggio urged users to choose reputable exchanges and avoid exchanges that will downplay serious security issues while risking users’ assets.

The Tech Report - Editorial ProcessOur Editorial Process

The Tech Report editorial policy is centered on providing helpful, accurate content that offers real value to our readers. We only work with experienced writers who have specific knowledge in the topics they cover, including latest developments in technology, online privacy, cryptocurrencies, software, and more. Our editorial policy ensures that each topic is researched and curated by our in-house editors. We maintain rigorous journalistic standards, and every article is 100% written by real authors.

This post was originally published on this site

print iconPrint
0 views
bookmark icon