Customers Lose Confidence as BingX Fall Victim to $50M Hack
The Initial estimates suggest losses exceeding $52 million, with the majority of stolen assets undergoing active swapping.
On September 20, 2024, at approximately 4:00 AM Singapore time, BingX, a prominent cryptocurrency exchange platform, experienced a security breach involving its hot wallet.
The attack, which involved unauthorized network access, resulted in the theft of digital assets across various blockchains, including Ethereum (ETH), Binance Coin (BNB), Base (BASE), Optimism (OP), Polygon (MATIC), Arbitrum (ARB), and Avalanche (AVAX).
Moreover, the Initial estimates suggest losses exceeding $52 million, with the majority of stolen assets undergoing active swapping.
BingX’s Chief Product Officer, Vivien, promptly addressed the incident, stating that the technical team detected abnormal network access, triggering an immediate emergency response plan.
Furthermore, this included transferring assets to secure storage and suspending withdrawals to mitigate further damage. While the company acknowledges a minor asset loss, it emphasizes that the majority of user funds remain safe and stored in cold wallets.
BingX has implemented a multi-layered security management system to protect user assets. The vast majority are stored in cold wallets, which are deemed more secure due to their offline nature. The platform uses hot wallets solely to facilitate withdrawals, minimizing the risk of significant losses.
BingX Reassures Its Community with Complete Transparency
The firm also emphasizes its commitment to user security and transparency, stating that it is actively investigating the incident and implementing further security measures.
Following the breach, BingX has requested that all users revoke approvals to active contracts. This measure aims to prevent any further losses and underscores the company’s proactive approach to mitigating potential vulnerabilities.
The incident was met with mixed reactions within the crypto space. While some users expressed concern and disappointment, others commended BingX’s swift response and commitment to transparency. One X user, highlighting the platform’s previous track record, voiced confidence in BingX’s ability to manage the situation effectively.
Nonetheless, “this security breach serves as a reminder of the list of ongoing challenges the cryptocurrency industry faces. While platforms strive to enhance security protocols, the evolving nature of cyber threats necessitates constant vigilance and adaptation” An X user expressed concerns.
However, BingX’s proactive response, transparency, and commitment to user protection in the face of this incident reveal responsible platform management in the dynamic world of cryptocurrency, they added.
In a similar event, the decentralized finance (DeFi) protocol DeltaPrimeDefi suffered a major security breach on the Arbitrum network, leading to the loss of millions of dollars. The attack, which occurred due to a compromised private key, resulted in the draining of several liquidity pools, causing significant losses for users.
