BingX Confirms Security Breach, Millions in Crypto at Risk Amidst Investigation

• BingX confirmed a security breach on September 20, 2024, involving its hot wallet, leading to asset losses and the activation of emergency protocols.
• Blockchain security firm PeckShield reported over $13.5 million in suspicious outflows, while Lookonchain estimated the losses at $26 million.
• BingX assured users that all lost assets would be fully compensated, with withdrawals expected to resume within 24 hours after the breach.

BingX confirmed a security breach involving its hot wallet on September 20, 2024. The incident led to asset losses, prompting the exchange to activate emergency protocols.

Vivien Lin, Chief Product Officer at BingX, revealed the breach through a post on X, where she explained that the technical team detected unusual network activity at 4 AM Singapore time, suspecting a potential hacking attack on the exchange’s hot wallet.

BingX Emergency Response and Safeguarding Assets

Once the breach was discovered, BingX quickly implemented its emergency response plan. The exchange transferred assets to secure locations and temporarily suspended withdrawals. Lin emphasized that BingX uses a layered security approach.

Most user funds are stored in cold wallets, while only minimal assets remain in hot wallets for withdrawals. To mitigate risks, BingX temporarily suspended all withdrawals and launched an emergency inspection. Lin reassured users that withdrawals would resume within 24 hours once the situation was fully under control.

Extent of Losses Still Under Investigation

Although BingX confirmed the breach, the exact extent of the losses is still being assessed. Blockchain security firm PeckShield initially reported observing an outflow of over $13.5 million, while analytics firm Lookonchain estimated losses as high as $26 million.

Despite these figures, Lin described the loss as minor and assured that BingX’s operations would remain unaffected.

User Compensation and Reassurance

Lin assured users that BingX would provide full compensation for the losses incurred during the breach. She also emphasized that the safety of user assets remained a top priority, with a compensation plan currently in development to address affected users. Lin stated, ‘BingX will fully compensate users for any lost assets and will restore normal operations swiftly.’

Community Reaction and Investigation

The security breach has sparked concern and criticism from the cryptocurrency community. Some users expressed frustration over delays in processing withdrawals, which were initiated before the official breach announcement.

BingX is conducting an internal investigation to understand how the breach occurred and calculate the final losses. As the investigation progresses, the exchange has promised more updates.