In a shocking turn of events, BingX, a cryptocurrency exchange based in Singapore, has confirmed it was the latest victim of a significant hacking incident, resulting in an estimated loss of over $43 million. This breach was initially detected on September 20, with blockchain security firm PeckShield first alerting the public to unusual network activity.
The hack reportedly began with the unauthorized movement of over 360 altcoins from BingX’s hot wallet, including substantial amounts like 4.44 million USDT, 1.04 million WUSD, and 9.38 BTCB, equivalent to approximately $590,000. The stolen assets were quickly transferred to the address “0xF7e8” and subsequently exchanged for Ethereum (ETH) and Binance Coin (BNB).
In the immediate aftermath, PeckShield reported that around $13.6 million worth of ETH was drained. However, a deeper analysis by on-chain analytics platform Lookonchain indicated that the total losses might reach as high as $26 million.
Just hours later, in a further blow, an additional $16.5 million worth of cryptocurrencies was drained despite BingX pausing all withdrawals. The stolen funds are now reported to be stored in another address, “0x1D…AEE,” containing 5.3K ETH, 4.1K BNB, and 1.65M MATIC.
BingX’s Chief Product Officer, Vivien Lin, took to X (formerly Twitter) to confirm the breach and provide reassurance to users. Lin stated that the company quickly initiated an emergency response plan upon detecting the breach. This involved transferring remaining funds to secure wallets and halting all withdrawals.
“We have few hot wallets with a limited amount of funds, and we are working to cover all losses,” Lin explained. She acknowledged that while the situation is dire, the losses are still being assessed. The exchange has promised to compensate affected users from its reserves and aims to restore full withdrawal capabilities within the next 24 hours.
Following the hack, BingX’s management has ramped up security protocols to prevent future incidents. The details of the attack and the full extent of the losses are still under investigation, with the exchange asking users for patience as they navigate this challenging situation.
EtherScan data indicated that the hackers had transferred millions of altcoins from one of BingX's hot wallets, known as ‘BingX 15,’ washing the funds across various blockchains to obscure their origins.
As the cryptocurrency landscape continues to face security challenges, the BingX hack serves as a stark reminder of the vulnerabilities present in digital asset exchanges. The exchange is taking significant steps to reassure users and stabilize operations following the breach. With compensation plans in place and a commitment to transparency, BingX aims to regain the trust of its community amid this crisis.
September 2024, Cryptoniteuae