BingX, a cryptocurrency exchange headquartered in Singapore, has reported experiencing a “minor asset loss” in the wake of significant suspicious withdrawals from one of its hot wallets. The incident was first flagged by members of the crypto community who noticed unusual outflows from the exchange.
On September 20, the chief product officer of BingX announced that the technical team had detected abnormal network activity around 4 a.m. local time, leading to concerns of a potential hack targeting the exchange’s hot wallet. In response, the company initiated an emergency protocol which included the urgent transfer of assets and a temporary suspension of withdrawals.
The spokesperson noted that while there has been a minor loss of assets, the total amount is still being assessed. BingX typically maintains a limited amount of cryptocurrency in its hot wallets to facilitate withdrawals; however, withdrawal services have been halted as the exchange conducts a thorough inspection and enhances its wallet security measures. The exchange hopes to restore withdrawal functionality within 24 hours.
On the same day, a blockchain security firm reported detecting a suspicious outflow of funds exceeding $13.5 million from BingX. Data revealed that an address associated with the exchange had received substantial amounts of cryptocurrency from its hot wallet labeled “BingX 15.” Other reports estimated losses across various blockchain platforms amounting to around $20 million, with the wallet in question holding over $13 million at the time of reporting.
Further tracking of recent transactions revealed that the address associated with the outflow had utilized a decentralized exchange to transfer funds, a tactic often employed by cybercriminals to conceal the origins of stolen assets. The situation is still evolving, and more details are expected to emerge as the investigation continues.
