BingX Resumes Services Following $42M Hack Recovery Efforts

BingX, a prominent cryptocurrency exchange, is on the mend after experiencing a $42 million breach. The incident affected its hot wallets, prompting the platform to halt withdrawals while enhancing security protocols.

Withdrawals on BingX resumed on September 21, starting with key assets such as Bitcoin (BTC), Ethereum (ETH), and Tether (USDT). Deposits were reactivated on September 22.

BingX Reopens Deposits and Withdrawals

As reported by BeInCrypto, BingX suffered a loss exceeding $42 million in various cryptocurrencies last week. The on-chain analysis firm Lookonchain indicated that the stolen digital assets comprised over 360 different altcoins.

The cyber attack primarily focused on the exchange’s hot wallets, which are more susceptible to threats due to their online nature. In contrast, cold wallets, which are kept offline and offer better security, were not impacted.

The hackers swiftly moved the stolen assets to the wallet address ‘0xF7e8’ and converted them into Ethereum and Binance Coin (BNB). They initially misappropriated $26 million worth of cryptocurrency, followed by an additional $16.5 million shortly after.

In response to the breach, BingX halted withdrawals to curb further losses while enhancing its security measures. Over the weekend, the exchange gradually began restoring deposit and withdrawal functionalities, starting with major cryptocurrencies like BTC, ETH, and USDT.

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The exchange reassured its users about the safety of their funds, stating that affected customers would be fully reimbursed. Blockchain security firms are actively tracking the stolen assets, and BingX is cooperating with law enforcement and other crypto exchanges to halt any further transactions involving the stolen funds.

«Our deposit and withdrawal services are gradually reopening. This incident has inspired an unprecedented level of trust and support from our users, project teams, and institutional partners. Withdrawals were reinstated ahead of deposits because we comprehend the urgency users feel to safeguard their assets during such uncertain times. The timing of reopening deposits was impacted by our need to verify the security of wallet services to prevent further incidents,» shared BingX’s Chief Product Officer Vivien Lin on X.

The recent hack on BingX reflects a larger trend of increasing attacks on cryptocurrency platforms. Earlier that week, DeltaPrime, a decentralized finance (DeFi) protocol on Arbitrum, reported a loss of $5.9 million due to suspicious activities.

In a related incident, Indonesian crypto exchange Indodax was compromised, with hackers stealing over $20 million. In each case, blockchain security firms detected the breaches only after the funds were illicitly moved and converted through various networks, complicating recovery efforts.

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This spike in hacks has prompted calls for enhanced security measures within the cryptocurrency industry. Experts underline the importance of exchanges and platforms adopting stronger security protocols to combat the increasingly sophisticated tactics employed by hackers.