In a shocking development, Singapore-based cryptocurrency exchange BingX announced that it had been the victim of a massive cyber attack, resulting in the loss of more than $44 million worth of digital assets. The attack occurred on a Thursday night and had far-reaching shockwaves through the crypto community in view of its concern about security measures and funds handling by platforms such as BingX in case of such attacks.
No doubt, attacks on cryptocurrency platforms by hackers are not uncommon nowadays; however, to this extent, this attack seems to highlight the vulnerability of even well-established platforms. The cryptocurrency taken away has exceeded $44 million, and BingX is now doing its best to assess the full extent while assuring its users of protection on their respective funds.
How Was BingX Attacked?
On Thursday night, blockchain security companies began to note an outflow of millions of dollars from BingX’s platform. The platform hardly said a word about what was going on, at least initially; it gave the scantiest statement indicating shutdown for “wallet maintenance.” It later emerged that was facing something more than merely routine wallet maintenance.
Shortly after, BingX published an official statement stating that the case had occurred due to “abnormal network access,” a definition strongly indicative of a hacking incident on the part of the hot wallet. A hot wallet connected to the internet is usually used by platforms to enable their customers to withdraw money quickly. This ease of accessibility, however, also makes them more prone to cyberattacks.
To the breach, BingX responded immediately through emergency measures. This included asset transfers to the wallet location, which is a relatively safer place for assets, and a temporarily withdrawn account of all withdrawals on the site. In light of these swift turns, the company admitted that there had been a loss of assets; the amount was currently minor and being calculated as of the discovery of the situation.
BingX Confirms Losses Over $44 Million
As the situation evolved, SlowMist, a blockchain security company, performed an audit in collaboration with to investigate the incident. The losses were pegged at about $44.7 million, as estimated by SlowMist. The losses are, however, estimated to be significantly higher, at $48 million, which the company has not refuted up to date.
In fact, BingX has been rather transparent in its recovery efforts. Even Chief Product Officer Vivien Lin took to social media for an audio update reassuring users that BingX is working with not only SlowMist but also Chainalysis, another top blockchain security firm, to track down the allegedly stolen funds. According to Lin, BingX would be fully compensating losses suffered by users using their own capital. “The total loss is minimal and manageable,” said the executive.
In an attempt to put an end to the speculations, BingX claimed that business operations were not impacted by the attack. Trading services were uninterrupted; nevertheless, for some time, withdrawal and deposit services were unavailable. Lin promised that all such services would return to normal within 24 hours.
BingX Freezes $10 Million in Recovery Efforts
One of the few bright spots in this aftermath was a news update from Lin stating that they were able to freeze $10 million in during their efforts. However, the company failed to give details on how they were able to freeze these funds or the present status of the stolen assets not frozen.
According to Friday evening, BingX stated that the company is slowly restoring its withdrawal service. Lin added that there would be an audio follow-up session to address the remaining questions surrounding the event once the total losses are confirmed and other information becomes available.
Crypto Platforms Under Attack in Asia
BingX is but one in a series of cyberattacks on cryptocurrency platforms in Asia this year. This string of hacks has brought a heightened spotlight on the security of the crypto platforms as a number of hacks, particularly high-profile hacks, have dominated the headlines recently.
For example, just last week, Indonesia’s largest crypto platform reportedly lost $20 million in a cyberattack. Similarly, a $27 million heist was reported on Singaporean platform Penpie, raising very serious questions about vulnerabilities in the region’s crypto infrastructure.
It doesn’t stop there, though. Crypto platforms in India and Japan were both also attacked early this year. Platforms in the two countries lost more than $230 million and $300 million, respectively. These incidents draw a pretty bad picture of the future for crypto security in Asia as pressure mounts on crypto platform systems to improve their defenses.
Future Plans for BingX
While the attack was grave in nature, BingX had already addressed the concern of going forward and ensuring that users were fully compensated. Vivien Lin, Chief Product Officer, was quick to reassure users that BingX is on top of the situation and has the means to handle the losses.
Lin has clearly stated that BingX is actively being worked upon with active participation from law enforcement and industry partners in tracing the stolen funds and bringing the attackers to book. Cybercrime within the crypto space has turned into a highly prioritized case for the law enforcement agencies around the world, and BingX, too, will probably find its case high on the priority list.
The platform claims to put in place new security measures in the near future that will prevent such incidents from happening again. No specific details have been leaked about what exactly will be done, but it’s believed that BingX will invest in wallet security, possibly reducing the hot wallets it uses and increasing cold wallets. Hot wallets are connected to the internet, making them easily prone to hacking attacks.
How the Crypto Community Responds To BingX Attack?
There were rants and raves circulating the news of the BingX attack. However, a very multi-differentiated reaction from the crypto community was noted. Many users actually applauded the transparency and swift steps taken by BingX in mitigating this attack. Certainly, its promise of full compensation to affected users has helped do the job of restoring confidence in the platform.
However, others have voiced frustrations at the lack of detail in the early stages of the attack. Users felt that BingX could have communicated the seriousness of the situation faster in the early stages rather than presenting it as “wallet maintenance.” Confusion and fear resulted in the unclear communication at the outset.
Moving forward, on the part of communication, BingX will have to be as transparent as possible concerning the recovery process that it is undertaking and what more security measures are being taken. This is crucial for the users to be confident enough to return their funds back onto the platform and feel comfortable leaving them there.
Lessons Inferred From the BingX Attack
The attack on BingX is a brutal reminder of the dire need for cybersecurity in the crypto industry. For some time now, cyberattacks on cryptocurrency platforms have been on the rise. From one attack to another, one thing is clear-no platform will be spared from the continuing attacks.
To users, the BingX hack is a reminder to exercise due diligence on storing large amounts of cryptocurrency in centralised exchange storage. In reality, many experts encourage storing significant amounts of cryptocurrency in cold wallets or hardware wallets, which are offline and thus much less penetrable by hackers.
This attack serves as an important warning to platforms like BingX: always update security protocols to drive security forward with the advancement of complexity within cyberattacks and the crypto space.
As the space grows in the crypto world, so will the cybercriminal’s sophistication. It will be crucial for platforms to remain at least a step ahead going forward.
Conclusion
Although the BingX attack was certainly a very serious breach, the platform has shown resilience in response. By committing to compensate users and continuing business operations, BingX is really aiming at turning the setback into an opportunity for even stronger security and rebuilding trust within the crypto community.
The following weeks will be particularly decisive for BingX: the platform will continue to recover from this attack while its collaboration with blockchain security firms and law enforcement determine how much of the stolen funds can be recovered and how fast it will be possible to fully restore withdrawal services.
