This week ushered in chaos and progress within the cryptocurrency landscape. A $42 million hack at BingX sent shockwaves through the market, raising concerns about security flaws in prominent exchanges. In parallel, the controversial airdrop from Hamster Kombat ignited fury after millions of players were barred from claiming tokens.
These incidents underscore the industry’s potential and pitfalls as it evolves and captures the scrutiny of regulators and innovators alike.
BingX Restores Services Following $42 Million Crypto Hack
On September 20, the cryptocurrency exchange BingX experienced a hacking incident, resulting in a loss exceeding $42 million in digital assets.
The breach initially pointed to suspicious transactions amounting to $13.6 million. As investigations progressed, the losses ballooned to over $26 million, ultimately reaching $42 million.
Read more: Crypto Project Security: A Guide to Early Threat Detection
The assets stolen comprised various cryptocurrencies, including 4.44 million USDT ($4.4 million), 1 million WUSD ($1 million), 608,660 USDC ($608,660), and 9.38 BTCB ($590,000). Security experts like PeckShield confirmed the attackers routed the funds to a wallet identified as ‘0xF7e8.’ On-chain data revealed they promptly converted the stolen assets into Ethereum (ETH) and BNB.
Despite the significant losses, BingX’s Chief Product Officer Vivien Lin reassured users that the company would compensate the full amount using its capital reserves.
“Our technical team detected irregular network access, suspecting a hacker attack on BingX’s hot wallet. We immediately enacted our emergency protocols, which included urgent asset transfers and suspending withdrawals. The asset loss was minimal, but we are still determining the exact amount,” Lin stated on X (Twitter).
In the wake of this incident, BingX has resumed operations. Withdrawals for major assets like Bitcoin (BTC) and USDT resumed on September 21, with full deposit functionality restored by September 22.
Hamster Kombat’s HMSTR Airdrop: Controversy Erupts
This week, Hamster Kombat, a widely played tap-to-earn game on Telegram, faced significant backlash after disqualifying over 63% of its players from the eagerly awaited HMSTR token airdrop. Scheduled for September 26, this airdrop aimed to distribute 60 billion tokens to 131 million eligible players from the game’s first season.
The uproar began when Hamster Kombat enacted last-minute anti-cheat protocols, leading to the banning of 2.3 million accounts for purportedly taking advantage of the game’s reward system.
Numerous players who dedicated considerable time to earn Points Per Hour (PPH) found themselves suddenly disqualified. This decision incited outrage across social media platforms.
The situation worsened as the HMSTR token’s price exhibited notable volatility after it began trading on major exchanges. Initially priced at $0.014, it rapidly plummeted by 20% to $0.011 within hours. As market sentiment further deteriorated, the price continued to fall, reaching about $0.0068506.
Despite the backlash, the developers of Hamster Kombat are confident that their anti-cheat measures will facilitate a fair distribution of rewards. Although the token’s value has seen a steep drop, developers are optimistic about its long-term outlook.
Kamala Harris Endorses Crypto and AI in Campaign Speech
This week, Vice President Kamala Harris made waves in the tech and crypto sectors with her first overt endorsement of cryptocurrencies as part of her presidential campaign. At a fundraising event in New York, she stressed the necessity of nurturing innovation in AI and digital assets, portraying them as vital for preserving America’s competitiveness on the global stage.
“We will collaborate to invest in America’s competitiveness, ensuring a robust future. We’ll advocate for innovative technologies like AI and digital assets whilst safeguarding our consumers and investors,” she declared.
This declaration marks a notable shift in Harris’ policy agenda, aligning her with key figures in the cryptocurrency sector, including Ripple co-founder Chris Larsen, who has openly supported her campaign. Larsen, an advocate for blockchain regulation, believes that Harris’ position may advance the desperately needed regulatory clarity in the digital asset realm.
Binance Refutes Allegations of Data Breach Impacting 13 Million Users
This week, talks of a potential data breach concerning 13 million users at Binance, one of the largest global cryptocurrency exchanges, circulated widely. Reports emerged on dark web forums suggesting that a group of hackers known as “Greavys” acquired access to sensitive user data, including names, email addresses, phone numbers, and residential information.
This alleged data was offered for sale on Telegram channels, heightening anxiety within the Binance user community. However, Binance quickly countered these allegations, denying any breach of data.
“Our security team has conducted a thorough investigation, and we found no evidence of a data leak. We are dedicated to safeguarding our users’ information,” a Binance spokesperson stated in an official response to BeInCrypto.
Changpeng Zhao (CZ), co-founder and former CEO of Binance, is expected to be released early from federal custody after serving a four-month sentence. CZ was imprisoned for breaching the Bank Secrecy Act, with charges resulting from Binance’s inability to maintain adequate know-your-customer (KYC) measures.
Initially, CZ’s release was set for September 29. However, due to federal regulations that permit early release when the scheduled date falls on a weekend, reports indicate he will now be released on September 27.
CZ faced a potential 36-month prison sentence; nevertheless, this was considerably reduced following a settlement with the U.S. Department of Justice (DOJ).
Despite his legal challenges, CZ remains a significant figure in the cryptocurrency sphere. Many industry insiders predict that he will refocus his efforts on emerging projects in blockchain, artificial intelligence, and biotechnology.
Read more: Who Is Changpeng Zhao? A Deep Dive Into the Ex-CEO of Binance
Even while facing legal hurdles, CZ’s legacy at Binance continues to be viewed as instrumental in enhancing global cryptocurrency liquidity. Ki Young Ju, CEO of CryptoQuant, commented on CZ’s influence.
“Do not underestimate CZ. He deserves recognition for his contributions. While Binance encountered obstacles, CZ’s accomplishments greatly overshadow his missteps,” Ju remarked.
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