BingX Exchange Suffers $26 Million Hack, Suspends Withdrawals

BingX, a Singapore-based cryptocurrency exchange, has confirmed a hack resulting in an initial loss of $26 million.

According to blockchain security firm PeckShield, hackers targeted the exchange’s hot wallet and transferred over 360 altcoins, including 4.44 million USDT, 1.04 million WUSD, and 9.38 BTCB ($590,000). These were sent to a wallet address labeled “0xF7e8.” The assets were then quickly converted to Ethereum (ETH) and Binance Coin (BNB).

Hi @BingXOfficial you may want to take a look –we observe suspicious significant fund outflow (>$13.6m) to this address: https://t.co/BEJAWWoouA
— PeckShield Inc. (@peckshield) September 20, 2024

On-chain platform Lookonchain later reported that BingX’s total losses reached approximately $26 million. The stolen funds are now held at an address containing 5.3K ETH, 4.1K BNB, and 1.65 million MATIC.

BingX Acknowledges the Breach

Vivien Lin, Chief Product Officer of BingX, confirmed the breach on X (formerly Twitter). She stated that the exchange’s technical team noticed “unusual network activity” on the morning of September 20, which prompted an immediate emergency response.

“The loss is limited and is still under estimation,” said Lin. She explained that BingX moved the remaining funds to secure wallets and temporarily suspended withdrawals to prevent further losses.

Lin also assured users that BingX keeps only a small portion of its funds in hot wallets. She confirmed that the exchange is committed to covering all losses and that users can withdraw their funds within the next 24 hours as it stabilizes operations.

The hackers used BingX’s hot wallet, labeled “BingX 15,” to transfer millions of altcoins to various addresses. According to data from EtherScan, the stolen funds were dispersed across different blockchains, making recovery efforts more difficult. Despite these challenges, Lin emphasized the exchange’s swift response, saying, “Our team moved the remaining assets to cold storage immediately.”

BingX revealed that it has increased its security protocols following the hack to prevent further incidents. Lin explained that the exchange is conducting an emergency inspection to fully assess the damage’s extent. More information will be shared once the investigation is complete.

This incident marks one of the largest exchange hacks in recent months, with total losses climbing to over $43 million as more transfers are uncovered. BingX has reassured its users that all efforts are being made to ensure the safety and security of their funds going forward.

Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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