Crypto Exchange BingX Vows to Compensate Users After $43M Hack

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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Last updated: 

September 20, 2024

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Singapore-based crypto exchange BingX on Friday confirmed a security breach after observing numerous “suspicious” outflows from one of its hot wallets online. Consequently, the exchange promised to compensate users for the losses.

The team announced via an X post that it had detected abnormal access to the hot wallet, suspecting it to be a hacker attack. “We immediately initiated an emergency response, including asset transfers and pausing withdrawals,” it said.

BingX further clarified that the losses encountered were minor and they were managing the situation. Additionally, they assured that the majority of assets are secure in cold wallets, while only a small fraction was impacted in the hot wallet.

PeckShield Confirms $43M BingX Hack, Exchange Freezes Withdrawals for 24-Hour Security Check

However, blockchain security firm PeckShield reported that the security breach actually led to a $43m loss, primarily involving Ethereum and BNB Chain. At first, the firm had pegged the number to be around $26m.

PeckShield observed that the hacker swiftly exchanged the majority of the pilfered assets for about 4,526 $ETH and 7,864.7 $BNB. As of its last update, the stolen funds totaled 5.3K ETH, 4.1K BNB and 1.65M MATIC.

Vivien Lin, BingX’s chief product officer, said that the exchange has temporarily suspended withdrawals to enhance security. During this time, the team is performing an emergency inspection. She added that withdrawals would resume no later than within 24 hours.

“We are working on a compensation plan, which will be announced soon,” she added.

Crypto Exchanges Face Security Crisis

The crypto exchange sector faced significant security challenges recently, with two other notable incidents highlighting the vulnerabilities within these platforms.

Crypto exchange Indodax encountered its own ordeal last week, where hackers pilfered around $22m in digital assets.

Meanwhile, WazirX, a well-known exchange in India, suffered a substantial loss, with attackers orchestrating a series of dubious transactions that siphoned off $234m from the platform.