Crypto Exchange BingX Loses Over $52M to Hackers

Singapore-based cryptocurrency exchange BingX has become the latest victim of a security breach, with the attackers carting away with millions of dollars worth of crypto assets.

According to the blockchain security firm Cyvers Alert, the hackers stole at least $52 million in various cryptocurrencies. However, BingX described the losses as “minor” and manageable.

🚨ALERT🚨Our system has flagged multiple suspicious transactions linked to @BingXOfficial across several blockchains.

Estimated losses have now exceeded $52M, with most of the stolen assets currently being swapped. Affected chains include #ETH, #BNB, #BASE, #OP, #POLYGON, #ARB,… pic.twitter.com/gQkWVBtdVC

— 🚨 Cyvers Alerts 🚨 (@CyversAlerts) September 20, 2024

The stolen assets include Ethereum (ETH), Binance Smart Chain (BNB), Base (BASE), Optimism (OP), Polygon (MATIC), Arbitrum (ARB), and Avalanche (AVAX).

Cyvers Alert also reported that some of the stolen funds were being swapped, with most of the assets exchanged for ETH and BNB on decentralized exchanges (DEXs) like Uniswap and Kyberswap, as confirmed by data from Etherscan.

BingX Suspends Transactions Temporarily

BingX’s chief product officer, Vivien Lin, addressed the incident, stating that the security breach was discovered on September 20 at around 4:00 a.m. Singapore time by the technical team.

She emphasized that only a small portion of funds was affected and that most user assets remained secure in cold wallets. Also, she reiterated that the breach had not significantly impacted the platform’s overall operations. As part of the exchange’s immediate response, transactions were temporarily suspended.

“We immediately started our emergency plan, including the urgent transfer of assets and withdraw suspension,” Lin said. 

BingX assured its users that withdrawals would resume within 24 hours and that the exchange would fully compensate users for any losses.

BingX Faces Criticisms

Before officially acknowledging the hack, BingX had issued a notice informing users of temporary maintenance on its wallet system, which could lead to delays in deposits and withdrawals. The announcement has since come under scrutiny from some crypto community members.

Is it “wallet maintenance” or are your wallets being drained?

If it was “wallet maintenance” then why is there a “minor asset loss”.

If you’re going to use a CEX, please use a real one that doesn’t play off exploits like this. https://t.co/DkhgdjJVc4

— Pop Punk (@PopPunkOnChain) September 20, 2024

Harrison Leggio, co-founder of the crypto startup g8keep, expressed skepticism regarding BingX’s transparency, questioning the supposed “wallet maintenance.” He advised users to consider using more reliable centralized exchanges.

Additionally, a community member voiced concerns over BingX’s response, suggesting that the exchange might be trying to minimize the severity of the hack.

“It seems like they’re just attempting to cover up the incident,” the individual commented. 

Despite these criticisms, BingX claims that the breach is being managed and that affected users would be compensated.