BingX, a major crypto exchange headquartered in Singapore has lost over $43 million following a fresh hacker attack on its hot wallets.
The Crypto exchange has paused the withdrawal of funds from the platform following the attack as it scampers to make sense of the dire situation.
Blockchain analysts peg the estimated loss by the crypto exchange to over $43 million making the hack one of the major exploits that happened in the crypto industry this year.
BingX’s chief product officer Vivien Lin announced the details of the Hack via her X page on behalf of BingX giving details on the development and what the team is doing to get around the situation.
“At around 4 am 20 Sep Singapore time, our technical team detected abnormal network access, suspecting a hacker attack on BingX’s hot wallet. We immediately started our emergency plan, including the urgent transfer of assets and withdrawal suspension.
There has been minor asset loss, but the amount is small and still being calculated. To protect user assets, we use a layered management system, with the majority of assets stored in cold wallets and only a minimum stored in hot wallets for withdrawals. To ensure security, withdrawals have been temporarily suspended while we conduct an emergency inspection and strengthen wallet services.
We sincerely apologize for the inconvenience. Withdrawals will be restored within 24 hours at the latest. BingX and the development team apologize for the disruption. Our mission to provide a seamless and trusted trading environment remains firm.
We are working on a compensation plan, which will be announced soon. Thank you for your understanding and continued support.”
Lin in her explanation assured users that most of their crypto assets are stored in cold wallets and were not impacted by the attack. She claimed the loss following the attack was minor despite counterclaims coming from their community.
Blockchain Forensic company Peckshield commented on the development revealing details on the number of crypto wallets already been moved by the hacker.
Peckshield estimated that roughly $26.68 million in assets, including Ethereum and Binance Coin, had already been moved by the platform’s hacker. They added that an additional $16.5 million was reportedly drained from the platform soon after.
Analysts traced the stolen funds to two wallet addresses and estimated the total loss to be over $43 million.
What to Know
- BingX pledged to replace the lost funds with its own money and urged its clients not to worry about the development.
- BingX also assured its clients that trading activity on the platform has continued as usual without any hitch and withdrawals from the platform will resume within the next 24 hours.
