BingX announced on October 24th that all its services have been fully restored following the hot wallet incident on September 20th. The centralized exchange has also introduced a new upgraded firewall for its wallet, ShieldX, to enhance user fund security and better defend against external attacks.
Upon discovering suspicious activities in its hot wallet, the exchange immediately suspended deposits and withdrawals. BingX gradually resumed deposits, with the first phase launched on September 21st. This process continued until October 8th when the exchange announced the resumption of deposits for over 600 cryptocurrencies available on the platform.
It is estimated that the hot wallet incident at BingX has compromised over $43 million worth of user funds. However, the exchange’s team has not confirmed the amount and stated that the losses are minimal and can be covered by its capital. BingX also insists that the majority of user funds are kept in cold wallets. Some users are skeptical of this report and have requested the exchange to be more transparent.
Blockchain security company Peckfield was the first to report the incident, urging BingX to investigate suspicious activities possibly originating from hackers. Peckfield confirmed a transaction worth around $13.6 million involving an Ethereum address. BingX initiated an emergency action to contain the severe losses by conducting asset transfers and stopping all transactions.
BingX reassures its commitment to security to its users. BingX’s Chief Product Officer, Vivien Lin, stated that the exchange has been dedicated to improving user protection. Lin also emphasized the need for quick recovery following events like September 20th, saying, “BingX’s rapid response highlights our commitment to safeguarding user assets, with trust, efficiency, and transparency at the core of our approach. The launch of ‘ShieldX’ marks a crucial step in proactively strengthening platform defense.”
Lin further reiterated that the exchange’s primary focus is on continuous development and partnerships to enhance the platform. Lin confirmed plans to establish partnerships with industry leaders to set higher security standards in the cryptocurrency world.
The exchange also guarantees collaboration with top security companies to enhance threat monitoring for swift vulnerability detection. BingX also revealed that the platform will undergo frequent audits. Additionally, the platform mentioned the introduction of a bug bounty program to reward those involved in improving security.
Reports from blockchain and web3 security companies indicate a significant increase in blockchain vulnerability exploitation in 2024. According to blockchain security company Cyvers, hacker incidents have cost users over $2.1 billion in 2024 as of the end of September. This number surpasses the total of $1.69 billion for the entire year of 2023. The company also stated that there have been over 130 exploitation incidents in 2024, comparable to the 44 incidents in 2023. The report confirms that centralized finance suffers greater losses compared to decentralized finance.
CetriK’s third-quarter report confirms similar figures, with losses reaching $2 billion in 2024 so far. The report highlights Ethereum as the primary target for attacks this year. In the third quarter, attackers stole over $750 million from crypto addresses, and crypto phishing scams resulted in losses of over $46 million. The losses for Ethereum amounted to approximately $383 million.