BingX Confirms Minor Losses Amid Hot Wallet Breach, Assures Users of Safety

September 20, 2024

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Singapore-based cryptocurrency exchange BingX has confirmed a “minor asset loss” following suspicious outflows from one of its hot wallets, sparking concerns of a potential hack. On September 20, BingX’s Chief Product Officer, Vivien Lin, addressed the issue in a post on X (formerly Twitter), revealing that the platform’s technical team detected unusual network activity around 4 am Singapore time. The team immediately suspected an attack targeting BingX’s hot wallet.

Lin explained that the exchange swiftly activated its emergency response plan, which included halting withdrawals and urgently transferring assets to protect funds. Despite the breach, Lin reassured users that BingX only keeps a small amount of cryptocurrency in its hot wallets, limiting the impact of the attack.

“There has been minor asset loss, but the amount is small and still being calculated,” she said.

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PeckShield’s Warning

Earlier that day, blockchain security firm PeckShield raised the alarm, reporting a suspicious outflow of over $13.5 million from BingX’s wallets. Analytics platform Lookonchain also weighed in, suggesting losses could be as high as $26 million. However, Lin dismissed these figures, describing the actual loss as “minimal and manageable.”

While the investigation is ongoing, BingX has temporarily suspended withdrawals to conduct a thorough inspection and bolster its wallet services. Lin reassured users that withdrawals are expected to resume within 24 hours and emphasized that the platform would “fully compensate” any losses. She also stressed that user assets remained safe and that the incident would not affect the exchange’s business operations.

More Details on Stolen Funds

Data from blockchain explorer EtherScan provided further insight into the breach. PeckShield identified a wallet address, labeled “BingX 15,” which had received millions of dollars worth of crypto across multiple blockchains.

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The wallet’s balance reportedly dropped from $13.1 million to $9.5 million during the attack. Some transactions showed small amounts of crypto being transferred through decentralized exchange Kyberswap, a tactic frequently used by hackers to obscure the origins of stolen funds.

This incident follows a worrying trend of increasing cyberattacks on cryptocurrency platforms. In July, Bittensor faced an $8 million attack on several network wallets. Similarly, Indian crypto exchange WazirX and the Ethena Discord server have also been victims of recent security breaches.