Crypto exchange BingX has reported a potential security breach affecting its hot wallet. The incident has pushed the exchange to implement its emergency response protocols.
Vivien Lin, Chief Product Officer at BingX, confirmed the security incident in a post on X. According to Lin, the exchange’s technical team identified abnormal network access around 4 AM Singapore time.
This raised suspicions of a potential breach targeting BingX’s hot wallet. In response to the threat, BingX immediately started its emergency plan.
BingX moves funds and halts withdrawals
The emergency plan included the urgent transfer of assets and the suspension of withdrawals. The exchange has reported a “minor asset loss,” but the full extent of the hack is still being calculated.
In the tweet, Lin shared details about its layered management system. She stated that the majority of user funds are stored in cold wallets and only a minimal amount is kept in hot wallets for withdrawal purposes.
“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, Lin stated.
BingX is working on a compensation plan
BingX CPO has assured users that it is developing a compensation plan to address any losses incurred due to the breach. She also apologizes for the inconvenience caused by the attack. The exchange has put out an announcement but has yet to clarify the hack situation.
The announcement is titled “Notice on the Temporary Wallet Maintenance (2024-09-20).” BingX stated that users might face a delay in the crediting time of deposits and withdrawals as the wallet system is undergoing temporary maintenance.
The exchange also advised to deposit or withdraw later. However, ever since the tweet by Lin, the community has been puzzled and some even furious.
One user stated that he withdrew before the announcement and that the withdrawal still hasn’t been completed.
Before the exchange’s hack confirmation, few users started sharing news in the chat that the exchange was hacked and spoke about funds moving. However, those messages were deleted by the group admins, urging users to be careful of fake news.
The extent of the hack and the funds lost haven’t been revealed yet by the exchange. However, MartyParty identified suspicious wallets that were moving crypto Kyberswap.
