According to The Block, Singapore-based cryptocurrency exchange BingX suffered an apparent security breach in its hot wallets. Security analysts at PeckShield estimated the loss of $43 million in cryptocurrencies.
The security breach at BingX resulted in a significant loss of funds. Analysts at PeckShield noted that the loss of cryptocurrency from the incident was estimated at $43 million, although the exchange described it as “minor” and manageable.
PeckShield added that most of the stolen funds were moved in multiple batches.
In this attack, Vivien Lin, chief product officer of BingX, said that the incident was identified at around 4 a.m. Singapore time on September 20, when BingX's technical team detected "abnormal network access, suspected to be a hacker attack on the exchange's hot wallet."
To prevent further losses, withdrawals have been suspended as part of a contingency plan. "We immediately activated the contingency plan, including the emergency transfer of assets and suspension of withdrawals. The asset losses were minor," Lin said.
The exchange said withdrawals would be reopened within the next 24 hours and promised a compensation plan for users.
“So far, the losses are small and we have managed them properly. Most of the assets are safely stored in cold wallets, and only a small part was affected in hot wallets,” they claimed.
