Singapore-based crypto platform faces hacker attack; users assured of compensation amid security concerns.
BingX, a cryptocurrency exchange based in Singapore, recently faced a significant security breach. Reports suggest that assets worth approximately $20 million were transferred to a hacker's address. The hacker allegedly liquidated various altcoin assets and moved the funds to other addresses, raising serious security concerns among users.
In response to the suspicious activities, BingX confirmed a 'minor asset loss' due to outflows from a hot wallet, which they suspect was a hacker attack. But soon the 'minor loss' surpassed $52 million. The exchange's technical team detected abnormal access and quickly initiated an emergency plan. This included transferring assets and suspending withdrawals to prevent further losses.
While BingX assured users that the losses are minimal and manageable, estimating them between $13.5 million and $26.7 million, the incident has raised concerns about the exchange's transparency. BingX promised full compensation to affected users and aimed to resume withdrawals within 24 hours. However, the temporary maintenance of its wallet system caused delays in deposits and withdrawals, adding to user frustrations.
The breach highlights the ongoing security challenges faced by cryptocurrency exchanges. With the hacker reportedly converting stolen funds into Ethereum, BNB, and POL, the incident underscores the need for robust security measures to protect digital assets.
