BingX Exchange Hack Causes $20 Million Loss Of Users

Key Points:

• BingX lost around $20 million in a hot wallet breach that was discovered on September 20.
• The exchange assured users that most assets are stored in cold wallets, and the platform will cover all losses.
• The BingX exchange hack follows a series of recent crypto platform breaches, including hacks on WazirX and Banana Gun

On September 20, crypto exchange BingX announced that it was targeted in a security breach following the theft of about $20 million from its hot wallet.

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BingX Exchange Hack Causes $20 Million in Lose

The BingX exchange hack was detected by the technical team at around 4 a.m. according to Singapore Time and responded immediately to secure the users’ assets.

In the attack, the hacker managed to sell several altcoins and transferred the assets to other addresses. The platform immediately activated its emergency response plan, which included the suspension of all withdrawals and the transfer of the remaining assets to a safer location. While the full extent of the damage is still being calculated, BingX assured users that the losses would be fully covered for users.

Meanwhile, BingX announced in a public notice that its wallet system is in temporary maintenance in light of the emergency inspections and security upgrades.

BingX has taken note to mention that the majority of assets are actually held in cold wallets, minimizing further risk of compromise. However, the exchange cautions users that deposit and withdrawal times will be extended due to this safety measure, with the actual resumption of withdrawals within 24 hours.

Crypto Industry Faces Growing Wave of Security Breaches

The BingX exchange hack is the latest in a growing list of recent crypto exchange hacks. In July, the Indian exchange WazirX was robbed of more than $100 million in Shiba Inu (SHIB) and $52 million in Ether following a breach of its multisig wallet. The attack was suspected to be perpetrated by the North Korean hacking group Lazarus and saw WazirX enter restructuring mode.

But just a day before the BingX exchange hack, the Telegram trading bot Banana Gun suffered a security compromise that reeled in losses above 500 ETH ($1.9 million). BingX said it is working to restore normal operations and strengthen its defences following the breach.