BingX Pledges Full Compensation to Users After $43M Hack

Singapore-based cryptocurrency exchange BingX recently confirmed a security breach resulting in the theft of approximately $43 million. The exchange observed suspicious activity in one of its hot wallets, leading to immediate emergency measures.

BingX quickly transferred assets, paused withdrawals, and assured users that the majority of funds remained secure in cold wallets, with only a small portion affected.

Despite initial claims that the impact was minimal, blockchain security firm PeckShield confirmed the loss was higher than expected, with most stolen assets converted into Ethereum (ETH) and Binance Coin (BNB).

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The breach highlights the increasing security vulnerabilities facing crypto exchanges, as cybercriminals continue to target hot wallets that are more exposed to online threats.

PeckShield Reports $43M Loss, Asset Conversion to ETH and BNB

PeckShield, a blockchain security firm, reported that the hacker stole around 5,300 ETH, 4,100 BNB, and 1.65 million MATIC in the attack, bringing the total loss to $43 million.

Most of these assets were quickly exchanged for approximately 4,526 ETH and 7,864 BNB. Initially, PeckShield had estimated the loss at $26 million but later revised this figure as more transactions were uncovered.

Vivien Lin, BingX’s Chief Product Officer, confirmed that the exchange temporarily suspended withdrawals to carry out a 24-hour security audit.

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During this period, BingX conducted an emergency inspection to ensure the safety of user funds and the overall security of its platform.

Lin also assured users that withdrawals would resume within 24 hours and that a compensation plan would be announced shortly.

Security Concerns in the Crypto Exchange Sector

BingX’s breach is the latest in a series of high-profile hacks targeting crypto exchanges. Indodax, another exchange, reported a $22 million loss last week due to a similar security breach, while India-based exchange WazirX lost an estimated $234 million to attackers who exploited vulnerabilities through suspicious transactions.

These incidents underscore the growing threat of cyberattacks in the crypto space, particularly against hot wallets that are connected to the internet.

Exchanges like BingX are now under increasing pressure to improve their security protocols, reduce reliance on hot wallets, and enhance user trust through swift compensation and transparency measures.

Key Takeaways:

• BingX lost $43M in a hack, affecting ETH, BNB, and MATIC assets.
• The exchange paused withdrawals and initiated a 24-hour security check.
• Crypto exchanges face increasing security threats, as seen in recent breaches across the industry.