BingX, a Singapore-based cryptocurrency exchange, has suffered a security breach, leading to the loss of over $20 million in digital assets. The platform, known for its spot, derivatives, and copy trading services, is now undergoing a 24-hour maintenance period to identify the cause of the exploit and strengthen its security protocols. This incident has shaken the exchange, as users express concerns over the safety of their funds.
From some social networks, the extent of the exploit was confirmed, the extent of which remains massive. As reported by the blockchain analytics platform Spot On Chain, the hacker stole approximately $27 million worth of different cryptocurrencies from BingX’s hot wallets. These funds are currently being converted to ether, the native token of the Ethereum blockchain network. The hacker’s addresses have collected 7,172 ETH valued at around $17.58 million and 11,467 BNB worth $6.44 million, raising concerns regarding the overall exchange loss.
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BingX Implements Emergency Plan
Chief Product Officer at BingX, Vivien Lin, stated the matter, stressing that the exchange had immediately responded to the attack. Lin said BingX activated its contingency plan when it became aware of the hacker’s actions. This plan entailed migrating the remaining digital currency to other safe locations and stopping all withdrawals to minimize more losses.
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Lastly, Lin said there were indeed losses of some assets; however, they have not yet been quantified by BingX’s security team. Security and asset management of the exchange are done through a multilayered approach. Some of its funds are held in cold storage, making it extremely difficult for hackers to access and steal. It also ensures that most of the exchange’s cryptocurrency is stored in cold wallets, with only a small percentage of the tokens in the hot wallet used for withdrawal purposes and other similar functionalities.
Conclusion
BingX’s ongoing maintenance period aims to pinpoint the root cause of the breach while reinforcing its security infrastructure. The exchange has promised to provide further updates as it works through this critical period. As the crypto community waits for the full impact to be assessed, the incident highlights the increasing importance of robust security measures in the ever-evolving cryptocurrency landscape.
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Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.