BingX Resumes Deposits and Withdrawals After $42 Million Hack

BingX Resumes Deposits and Withdrawals After $42 Million Hack

BingX, a prominent cryptocurrency exchange, is making strides toward recovery after a major security breach that resulted in the loss of $42 million in digital assets. The attack, which targeted the exchange’s hot wallets, forced BingX to temporarily suspend withdrawal services as part of its efforts to strengthen security measures.

On September 21, BingX took the first step toward normal operations by reopening withdrawals for major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Tether (USDT). Deposits were reinstated the following day, on September 22.

Details of the Attack

As initially reported by BeInCrypto, the breach resulted in the theft of over $42 million worth of assets from BingX. On-chain analytics firm Lookonchain revealed that the stolen funds comprised more than 360 different altcoins.

The hackers targeted the exchange’s hot wallets, which are more vulnerable due to their constant connection to the internet. BingX’s cold wallets, which are offline and therefore more secure, remained untouched.

The stolen assets were swiftly moved to a wallet with the address ‘0xF7e8’ and were subsequently converted into Ethereum (ETH) and Binance Coin (BNB). The attackers initially stole $26 million worth of assets but later extracted an additional $16.5 million.

Security Measures and User Assurance

In the aftermath of the hack, BingX suspended all withdrawals to prevent further losses and began upgrading its security protocols. Over the weekend, the platform gradually resumed deposit and withdrawal services, prioritizing the safety of user funds.

BingX has assured its users that all affected customers will be fully compensated. To aid in the recovery process, blockchain security firms are actively tracking the stolen funds, and the exchange is working closely with law enforcement and other crypto platforms to freeze any suspicious transactions.

Vivien Lin, BingX’s Chief Product Officer, addressed the situation on social media platform X, stating:

“Our deposit and withdrawal services are gradually reopening. This incident has shown us an incredible level of trust and support from our users, project teams, and institutional partners. We prioritized restoring withdrawals as quickly as possible, understanding how critical it is for users to safeguard their assets. The delay in deposits was necessary to ensure all wallet services were fully secure.”

A Rising Trend of Crypto Attacks

The BingX incident is just one of several high-profile hacks that have shaken the crypto industry in recent weeks. Earlier in the same week, decentralized finance (DeFi) protocol DeltaPrime, operating on the Arbitrum network, lost $5.9 million in an attack. Additionally, the Indonesian exchange Indodax reported a significant breach resulting in the theft of over $20 million.

These incidents highlight the growing threat to crypto platforms and have intensified calls for stronger security measures across the industry. Experts continue to urge exchanges to adopt more advanced defenses as hackers become increasingly sophisticated in their methods.