A recent report from leading blockchain security firm Cyvers has shed light on a major security breach at a popular Singapore-based cryptocurrency exchange, BingX. According to Cyvers, the exchange lost a staggering $52 million in a recent hack that targeted its hot wallet.
The breach affected multiple blockchains, including Ethereum (ETH), Avalanche (AVAX), BNB, Optimism (OP), and Polygon (POL), Base, and Arbitrum (ARB). Cyvers reported that suspicious transactions linked to BingX were flagged across these different blockchains, resulting in the estimated loss of $52 million. The stolen assets are currently being swapped by the hackers.
Cybersecurity firm Peckshield also confirmed the hack, stating that the hacker made away with approximately $43 million worth of stolen crypto assets. The stolen funds mainly flowed out of Ethereum and BNB Chain, with the hacker already exchanging most of the assets for Ethereum and BNB.
In response to the breach, BingX’s chief product officer, Vivien Lee, took to social media to explain the exchange’s layered asset management protocol. Lee emphasized that the majority of assets are stored in cold wallets, with only a minimal amount kept in hot wallets for withdrawals. As a precautionary measure, customer withdrawals have been temporarily suspended while the exchange conducts an emergency inspection and strengthens its wallet services.
The incident serves as a stark reminder of the importance of robust security measures in the cryptocurrency industry. As the value of digital assets continues to rise, exchanges must prioritize the protection of their users’ funds to prevent such breaches in the future.
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