365Crypto
BingX Confirms Minor Losses After Hack
Crypto Exchange Hack Confirmed
BingX, a Singapore-based crypto exchange, has claimed a minor asset loss after a suspected hack of its hot wallet. The incident was first noticed when significant outflows were detected online, raising concerns.
Suspicious Outflows Detected
On Sept. 20, BingX’s Chief Product Officer, Vivien Lin, stated that the exchange detected abnormal network access early in the morning. BingX immediately launched an emergency response, transferring assets and suspending withdrawals to limit further damage.
Losses Still Being Calculated
While initial reports estimated losses ranging from $13.5 million to $26.7 million, Lin described the impact as minor and said the exact amount was still being determined. BingX uses hot wallets to store only a small portion of its assets, and Lin reassured users that the loss wouldn’t affect business operations.
Withdrawals Temporarily Paused
BingX halted withdrawals as part of its inspection and reinforcement of wallet services, promising to restore services within 24 hours. The exchange also announced plans to fully compensate users for any losses incurred.
Criticism of Disclosure
Some in the crypto community questioned BingX’s transparency. Harrison Leggio, co-founder of crypto startup g8keep, criticized the exchange’s handling of the situation, pointing out inconsistencies in the messaging.
Funds Transferred via Kyberswap
Data from EtherScan revealed that one of BingX’s hot wallets had transferred millions of dollars worth of multiple tokens across various blockchains. Some of the funds were moved through Kyberswap, a decentralized exchange often used by hackers to hide the source of stolen assets.
Footnote:
- Hot Wallet: A wallet connected to the internet, typically used for day-to-day transactions but vulnerable to hacks.
- Decentralized Exchange (DEX): A peer-to-peer marketplace allowing crypto transactions without intermediaries, offering privacy but also used by hackers to launder funds.
