A recent hack of the Singapore-based cryptocurrency exchange BingX resulted in the loss of more than $20 million in digital assets. The platform, which is well-known for its copy trading, spot, and derivatives trading services, is currently undergoing 24-hour maintenance to find the root of the vulnerability and fortify its security measures. The incident has triggered its users who are now worried about the security of their funds.
The size of the exploit, which is large, was verified by several accounts on X (formerly Twitter). According to Spot On Chain, a blockchain analytics tool, the hacker took over $27 million worth of various cryptocurrencies out of BingX’s hot wallets.
At this moment, these stolen funds are being exchanged for ETH. The hacker’s addresses have amassed 11,467 BNB, or $6.44 million, and 7,172 ETH, or around $17.58 million, which raises questions about the total exchange loss.
BingX Responds to Attack
Vivien Lin, Chief Product Officer at BingX, addressed the issue and emphasized that the exchange reacted to the attack right away. Lin stated that as soon as BingX learned of the hacker’s activities, it triggered its backup plan. To prevent further losses, this plan called for moving the remaining assets to other secure places and halting any withdrawals.
Ultimately, Lin stated that while some assets were lost, the BingX security team has not yet quantified them. A multilayered method is used for the exchange’s asset management and security.
Because some of its funds are kept in cold storage, hackers find it very difficult to gain access to and steal it. Additionally, it guarantees that the majority of the cryptocurrency held by the exchange is kept in cold wallets, with the hot wallet’s tokens only being utilized for withdrawals and other related functions.
Final Thoughts
The recent hack of BingX, resulting in over $20 million in lost assets, underscores the persistent vulnerability of cryptocurrency exchanges to cyberattacks. Despite BingX’s reputation as a platform for copy trading and derivatives, this breach raises serious concerns about the security protocols in place, particularly regarding hot wallets, which were the target of the hack. While the exchange has responded quickly by halting withdrawals and moving assets to secure locations, the sheer size of the exploit has rattled users, causing a crisis of confidence in BingX’s ability to safeguard funds.
BingX’s response, including statements from its Chief Product Officer Vivien Lin, emphasizes their multilayered security approach and reliance on cold storage to protect most of their assets. However, the fact that a significant amount of cryptocurrency was still vulnerable to theft points to the ongoing risks associated with hot wallets and the broader need for exchanges to bolster their security frameworks. While this incident may push BingX to strengthen its defenses, it also serves as a warning to the cryptocurrency industry as a whole about the continuous threat of hacks, even for established platforms.
