BingX Hacked: Minor Hot Wallet Breach with Minimal Asset Losses
BingX Hacked: Team took Immediate Response and User Fund Protection
On September 20, 2024, Singapore-based cryptocurrency exchange BingX confirmed that its hot wallet experienced a minor hack, resulting in asset losses. BingX took to X (formerly Twitter) to inform the community about the BingX hack.
The hack occurred around 4 AM (UTC+8) when BingX's technical team detected abnormal network activity and suspected a hacker attack. Immediate action was taken to transfer assets and temporarily suspend withdrawals, ensuring minimal impact on user funds.
BingX Hacked: Hot Wallet Vs Cold Wallet
BingX's Chief Product Officer, Vivien Lin, shared on X (formerly Twitter) that while the exact amount of the loss is still being calculated, the assets lost were minimal and covered by the BingX exchange. Lin reassured users that most of BingX’s funds are stored securely in cold wallets, leaving only a small portion in the hot wallet for withdrawal requests. As a precautionary measure, withdrawals have been paused temporarily, with the exchange aiming to resume services within 24 hours.
Blockchain security firm PeckShield reported that over $13.5 million was withdrawn from BingX's hot wallet, while another platform, Lookonchain, estimated the total losses at $26 million. Despite these reports, Lin emphasized that the loss would not affect BingX’s business operations, and users’ assets remain safe and secure. The exchnage has committed to fully compensating for any losses incurred due to the BingX hack.
Community Criticism and Further Investigation
Notably, Harrison Leggio, co-founder of crypto startup g8keep, expressed criticism of BingX's communication on social media, questioning whether it was a routine "wallet maintenance" or a more severe wallet drain. EtherScan data provided by PeckShield shows significant fund transfers from a wallet labeled “BingX 15,” which held over $9.5 million at the time, down from $13.1 million earlier in the day.
At the time when the exchange listing Hamster Kombat on BingX, it is essential to remain focused on ensuring user funds' safety. They have extended deposit and withdrawal processing times to conduct thorough security checks and reinforce wallet services. The exchange apologizes for the inconvenience and appreciates the community's patience during this critical period.
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