In a week marred by multiple cryptocurrency breaches, BingX also fell victim to a significant hot wallet hack that saw the loss of over $42 million in assets. This hack adds to the growing number of security vulnerabilities exposed in the crypto sector, highlighting the urgent need for more robust security measures across platforms.
Key Takeaways:
- BingX lost $42M in a hot wallet hack but promises full compensation.
- Most deposit and withdrawal services have fully resumed already.
- A 5M USDT airdrop is launching in order to restore trust and thank users for patience.
What happened?
The attack on BingX was first detected by blockchain security firm PeckShield on September 20, 2024, at approximately 4:00 AM UTC. Initially, the outflow of assets was estimated at around $26 million, but further analysis revealed that over $42 million in various altcoins had been stolen. The stolen funds, including USDT, USDC, and BTCB, were swiftly transferred to a wallet and then exchanged primarily for Ethereum (ETH) and BNB.
Following the breach, BingX immediately suspended all withdrawals to prevent further asset loss. The exchange’s Chief Product Officer, Vivien Lin, confirmed the attack and stated that the company had enacted its emergency response plan, transferring assets to safer locations and temporarily halting withdrawals. Lin reassured users that BingX would fully compensate for the losses from its own capital reserves, and withdrawals would resume within 24 hours.
BingX’s Swift Response and Recovery Plan
In the aftermath of the hack, BingX’s technical team worked around the clock to contain the situation. The company confirmed that only the hot wallet had been compromised, with the majority of assets safely stored in cold wallets. By freezing $10 million in assets and collaborating with external security firms like SlowMist and Chainalysis, BingX is actively working to mitigate the impact of the hack.
In an effort to reassure its user base, BingX also announced a comprehensive security overhaul. This includes upgrading its wallet system, reinforcing security protocols, and implementing stronger protective measures to prevent future incidents.
Deposit services have already started on Sep 22nd for USDT, USDC, BTC, ETH, TRX and SOL, with more coins gradually becoming available. Users looking to deposit funds to BingX must ensure to get new deposit addresses from the exchange, as old ones may be compromised and are no longer in use.
Ensuring Future Security
BingX is determined to turn this incident into a learning opportunity. Along with external experts, the platform is scrutinizing every detail of the breach to strengthen its defenses. Upcoming security upgrades will focus on reinforcing wallet infrastructure, improving transaction monitoring, and tightening access controls.
During an Ask Me Anything (AMA) session, Vivien Lin emphasized the company’s commitment to transparency, promising to keep the community informed throughout the investigation and future developments. Lin confirmed over $10 million in stolen assets were frozen, but there was no confirmation about the full amount of assets stolen by hackers.
This security incident will no doubt lead to BingX bolstering its security. It’s important to reiterate that user assets are safe, and the exchange will recover the losses from their own assets. Thankfully, BingX is adhering to industry’s best practices when it comes to asset safety, and majority of user funds are stored in cold wallets and thus not susceptible to similar hacks.
Safest crypto exchanges:
 Binance |  Coinbase |  Gemini |  Crypto.com |  OKX | |
|---|---|---|---|---|---|
| Launch Date | 2017 | 2012 | 2015 | 2019 | 2017 |
| Proof of Reserves | |||||
| Regulatory Compliance | |||||
| Reputation and Reliability | |||||
| Asset Safety and Trust | |||||
| Account Security | |||||
| Cexfinder Rating | |||||
These safe exchanges are highlighted based on factors included in the table, and other safety and security aspects. Our safest crypto exchanges page has a more comprehensive list of safest cryptocurrency exchanges.
BingX’s Path to Recovery
Despite the $42 million loss, BingX remains committed to safeguarding its users’ assets and rebuilding trust. With swift action to cover losses, a robust recovery plan, and a significant airdrop, the exchange is working to ensure that users continue to feel secure on its platform. As crypto security breaches become more frequent, BingX’s response sets an example of transparency and user protection.
5 Million USDT Airdrop: A Gesture of Gratitude
In a bid to restore trust and thank its users for their patience, BingX announced a 5 million USDT airdrop. This airdrop will reward eligible users who maintained a positive net deposit balance during the breach period.
Airdrop Details:
- Eligibility: Users must have completed KYC verification, held at least 10 USDT in assets, and logged in between September 10 and September 19.
- Distribution Timeline: The airdrop will take place between September 20 and September 25, with lucky winners receiving USDT, BTC, or other tokens, valued up to 5,000 USDT.
This initiative aims to rebuild user confidence while incentivizing continued platform engagement.
For updates on the aftermath of this security incident, visit BingX’s official page and follow their social media channels for the latest announcements.
