Cryptocurrency exchange BingX has reported a “minor asset loss” following the detection of unusual outflows from a hot wallet.
Breach Details and Impact
On September 20, Vivien Lin, Chief Product Officer at BingX, announced that the stolen amount is still under review. The breach occurred at around 4:00 A.M. Singapore time.
Blockchain security firm Cyvers estimated the losses at over $52 million. The hacker swapped most assets across multiple blockchain networks, including Ethereum, Binance Smart Chain, Base, Optimism, Polygon, Arbitrum, and Avalanche.
Hakan Unal, Senior Security Operations Lead at Cyvers, explained that the hacker’s swift asset-swapping resembles tactics used by North Korean hacking groups. He stated:
“This hacker’s behavior—using multiple wallets to swap altcoins into ETH and BNB before consolidating—is consistent with the tactics we’ve seen in past Lazarus operations.”
Temporary Service Suspension
Following the breach, BingX halted withdrawals to conduct an emergency inspection. The exchange also aimed to enhance its wallet security. Lin reassured users that withdrawals would resume within 24 hours.
“To ensure security, withdrawals have been temporarily suspended while we conduct an emergency inspection and strengthen wallet services. We sincerely apologize for the inconvenience. Withdrawals will be restored within 24 hours at the latest,” Lin stated.
She emphasized that most assets are kept in cold wallets. Only a small portion is stored in hot wallets for transactions. Furthermore, BingX has promised to fully cover any losses with its own funds. Lin confirmed that user assets remain secure.
Rising Centralized Exchange Hacks
This breach highlights a growing trend of attacks on centralized exchanges (CEXs). Earlier this year, blockchain security firm Chainalysis reported a surge in CEX hacks. Hackers have shifted their focus away from decentralized finance (DeFi) platforms.
Recent examples include the $305 million hack on Japan’s DMM Bitcoin platform and a $235 million breach of India’s WazirX exchange in July. Indonesia’s Indodax exchange also reported a $20 million loss after a recent attack.
Security experts have linked these hacks to North Korean actors. Over the past seven years, these groups have stolen over $3 billion in digital assets.qa
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