Singapore-based cryptocurrency exchange BingX has confirmed a minor asset loss following suspicious outflows from one of its hot wallets, sparking concerns of a potential hack. On September 20, BingX’s Chief Product Officer, Vivien Lin, addressed the issue, revealing that the platform’s technical team detected unusual network activity around 4 am Singapore time.
PeckShield’s Warning
Earlier that day, blockchain security firm PeckShield raised the alarm, reporting a suspicious outflow of over $13.5 million from BingX’s wallets. Analytics platform Lookonchain also weighed in, suggesting losses could be as high as $26 million. However, Lin dismissed these figures, describing the actual loss as 'minimal and manageable.'
More Details on Stolen Funds
Data from blockchain explorer EtherScan provided further insight into the breach. PeckShield identified a wallet address, labeled 'BingX 15,' which had received millions of dollars worth of crypto across multiple blockchains. The wallet’s balance reportedly dropped from $13.1 million to $9.5 million during the attack. Some transactions showed small amounts of crypto being transferred through decentralized exchange Kyberswap, a tactic frequently used by hackers to obscure the origins of stolen funds.
Recent Security Incidents
This incident follows a worrying trend of increasing cyberattacks on cryptocurrency platforms. In July, Bittensor faced an $8 million attack on several network wallets. Similarly, Indian crypto exchange WazirX and the Ethena Discord server have also been victims of recent security breaches.
BingX has temporarily suspended withdrawals to conduct a thorough inspection and bolster its wallet services. Withdrawals are expected to resume within 24 hours and users will be fully compensated. Vivien Lin assured that user assets remain safe and that the incident would not affect the exchange’s business operations.
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