BingX, a major crypto exchange, is getting back on track after suffering a $42 million hack. The attack hit its hot wallets, leading the platform to suspend withdrawals while it upgraded security measures.
On September 21, BingX resumed withdrawals, starting with major assets like Bitcoin (BTC), Ethereum (ETH), and Tether (USDT). Deposits became available again on September 22.
BingX Reopens Deposits and Withdrawals
As BeInCrypto reported, BingX lost over $42 million in various digital assets last week. On-chain analysis firm Lookonchain revealed that the stolen assets included over 360 different altcoins.
The attack primarily targeted the exchange’s hot wallets, which are more vulnerable due to their online accessibility. Cold wallets, which are offline and more secure, remained unaffected.
Hackers quickly transferred the stolen funds to the wallet address ‘0xF7e8’ and exchanged them for Ethereum and Binance Coin (BNB). They initially stole $26 million worth of crypto, but later drained an additional $16.5 million.
Following the breach, BingX suspended withdrawal services to prevent further losses while it worked on enhancing its security protocols. During the weekend, the exchange gradually began reinstating deposit and withdrawal services, starting with major cryptocurrencies like BTC, ETH, and USDT.
Read more: Crypto Project Security: A Guide to Early Threat Detection
The exchange has assured users that their funds are safe and that affected customers will be fully compensated. Blockchain security firms are actively involved in tracking the stolen funds, with BingX collaborating with law enforcement and other crypto exchanges to freeze any further movements of the stolen assets.
«Our deposit and withdrawal services are gradually reopening. This incident has allowed us to feel an unprecedented level of trust and support from our users, project teams, and institutional partners. Withdrawals were restored earlier than deposits because we fully understand the urgency users feel to protect their assets during uncertain times. The delay in reopening deposits was due to our need to ensure the wallet services were secure enough to avoid any further damage,» BingX’s Chief Product Officer Vivien Lin shared on X.
Last week’s BingX hack is part of a broader trend of rising attacks on crypto platforms. Earlier that same week, DeltaPrime, a decentralized finance (DeFi) protocol on Arbitrum, reported a $5.9 million loss due to suspicious transactions.
In a similar incident, Indonesian crypto exchange Indodax experienced a significant breach, with hackers stealing over $20 million. In all cases, blockchain security firms identified the intrusions only after the funds were illegally transferred and converted across multiple networks, further complicating recovery efforts.
Read more: A Guide to the Best AI Security Solutions in 2024
These repeated hacks have led to calls for better security across the cryptocurrency industry. Experts highlight the need for exchanges and platforms to adopt stronger security measures to defend against the increasingly advanced techniques used by hackers.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
