BingX announced on October 24th that all of its services have been fully restored following the hot wallet incident on September 20th. The centralized exchange has also introduced a new upgraded firewall for its wallet, ShieldX, to enhance user fund security and better defend against external attacks.
The exchange immediately suspended deposits and withdrawals upon discovering suspicious activities in its hot wallet. BingX gradually resumed deposits, with the first phase launched on September 21st. This process continued until October 8th, when the exchange announced the resumption of deposits for over 600 cryptocurrencies available on the platform.
It is estimated that the BingX hot wallet incident has impacted user funds worth over $43 million. However, the exchange’s team has not confirmed the amount and stated that the losses are minimal and can be covered by their capital. BingX also insisted that the majority of user funds are stored in cold wallets. Some users are skeptical of this report and have requested the exchange to be more transparent.
Blockchain security firm Peckfield was the first to report the incident, urging BingX to investigate suspicious activities possibly originating from hackers. Peckfield confirmed a transaction worth approximately $13.6 million involving an Ethereum address. BingX initiated an emergency action to contain the significant losses by conducting asset transfers and halting all transactions.
BingX assures users of its commitment to security. Vivien Lin, Chief Product Officer of BingX, stated that the exchange has been dedicated to improving user protection. Lin also emphasized the need for quick recovery following incidents like the one on September 20th.
“The swift response by BingX highlights our commitment to safeguarding user assets. Trust, efficiency, and transparency are at the core of our approach. The launch of ‘ShieldX’ marks a crucial step in proactively strengthening the platform’s defense,” said BingX’s Chief Product Officer, Vivien Lin.
Lin reiterated that the exchange’s primary focus is on continuous development and partnerships to enhance the platform. Lin further confirmed plans to establish partnerships with industry leaders to set higher security standards in the cryptocurrency world.
The exchange also guarantees collaboration with top security companies to strengthen threat monitoring and ensure the prompt detection of vulnerabilities. BingX also revealed that the platform will undergo frequent audits. The platform mentioned the introduction of a bug bounty program to provide rewards for parties involved in improving security.
Reports from blockchain and web3 security companies indicate a significant increase in blockchain vulnerabilities exploited in 2024. According to blockchain security company Cyvers, hacker incidents cost users over $2.1 billion in 2024, surpassing the total of $1.69 billion for the entire year of 2023. The company also stated that there were over 130 exploitation incidents recorded in 2024, comparable to the 44 incidents in 2023. The report confirmed that centralized finance suffered greater losses compared to decentralized finance.
CetriK’s quarterly report reaffirms similar figures, with losses reaching $2 billion recorded in 2024 so far. The third-quarter report by CetriK identified Ethereum as the primary target of attacks this year.
In the third quarter, attackers stole over $750 million from crypto addresses, while crypto phishing scams resulted in losses exceeding $46 million. Ethereum accounted for approximately $383 million in losses.
