Cryptocurrency exchange BingX has announced that its hot wallet has suffered a potential security breach. The incident has prompted the platform to implement emergency response protocols.
Vivian Lin, BingX’s Chief Product Officer, confirmed the security incident in a post on the X platform (formerly Twitter). According to Lin, the platform’s technical team identified an abnormal network access at around 4 a.m. Singapore time, raising suspicions that the BingX hot wallet had been hacked. In an immediate response, the platform implemented its contingency plan.
“At around 4am Singapore time on September 20, our technical team detected an abnormal network access, indicating a possible hacker attack on the hot wallet. We immediately implemented an emergency plan, including urgently moving assets and suspending withdrawals. Minor asset losses occurred,” said Vivian Lin.
BingX transfers funds and stops withdrawals
The contingency plan included urgently moving assets and suspending withdrawals. The platform reported a “minor loss of assets,” but the full extent of the breach has yet to be calculated.
In the tweet, Lin shared details about the platform’s layered governance system, noting that the vast majority of user funds are stored in cold wallets, while only a small amount is kept in hot wallets for withdrawal purposes.
“To ensure security, withdrawals have been temporarily suspended while we conduct an emergency inspection and enhance wallet services. We sincerely apologize for the inconvenience. Withdrawals will be restored within 24 hours at most,” Lin said.
BingX is working on a compensation plan.
The head of product explained that BingX is working on a compensation plan to cover any losses incurred by users as a result of the hack. She also apologized for the inconvenience caused by the attack. The platform has issued an announcement but has yet to provide full details on the status of the hack.
The announcement is titled “Notice of Temporary Wallet Maintenance (2024-09-20),” and BingX notes that users may experience delays in the timing of depositing and withdrawing funds as the wallet system undergoes temporary maintenance.
The platform also advised users to postpone deposits or withdrawals until a later date. However, since Lin’s tweet, some users have expressed confusion and even anger.
One user reported that he had withdrawn funds before the announcement, but the process had not been completed yet.
Source: Telegram
Before the hack was confirmed by the platform, some users started sharing news in the chat that the platform had been hacked, and talked about money movements. However, these messages were deleted by the group’s administrators, with users being warned about fake news.
The platform has yet to announce the extent of the hack or the amount of money lost. However, a user named MartyParty has identified suspicious wallets that are moving cryptocurrencies through the Kyberswap platform.
