BingX hot wallet suffered a hacker attack and faced a loss of 20 million US dollars, but its chief product officer Vivien Lin said the loss was minimal

Singapore-based cryptocurrency exchange BingX has confirmed a small asset loss following a suspicious outflow from one of its hot wallets. The exchange’s technical team discovered irregularities in its network, leading to concerns of a possible security breach.

BingX chief product officer, Vivien Lin, stated that the team detected abnormal activity at around 4 a.m. local time on 20 September. A possible hacking attack on one of its hot wallets was suspected.

In response, BingX activated its emergency protocols. The exchange suspended withdrawals and began transferring assets to safer locations. Lin reassured users that the asset loss was minimal but acknowledged that the total amount was still under calculation. BingX’s hot wallets typically store only a small amount of cryptocurrency, specifically allocated for withdrawals. Lin added that they are conducting a thorough inspection and enhancing their wallet services, with withdrawals expected to resume within 24 hours.

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Security Firms Report Major Outflows

Earlier that day, PeckShield, a blockchain security firm, flagged a substantial outflow from BingX’s hot wallet, with transactions surpassing $13.5 million. EtherScan data provided by PeckShield showed multiple tokens worth millions flowing across several blockchains from an address linked to BingX’s hot wallet.

Additionally, Web3 security firm De.Fi estimated a total loss of $20 million across multiple blockchains. At the time, the wallet contained over $13.1 million in cryptocurrency spread across nine addresses.

Hackers Attempt to Conceal Funds

Further analysis revealed that some funds had been moved via Kyberswap, a decentralised exchange. This tactic, frequently employed by hackers, allows them to obfuscate the origin of the stolen funds.

Despite the efforts made by BingX, the exchange is yet to reveal the full extent of the breach. The initial loss seems small, but given the large sums flagged by security firms, the final impact could be greater.

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An Unsettling Incident

This event marks another instance of cryptocurrency platforms facing security challenges. While BingX's swift response may mitigate the impact, the breach once again underlines the risks associated with using hot wallets.

The exchange’s efforts to restore service and address the situation will be crucial in the coming hours.