- BingX resumes services following the September wallet incident.
- New security methods, such as ShieldX, improve fund protection.
On October 24, BingX announced that it had fully restored all of its services following a hot wallet incident on September 20. The centralized exchange additionally created ShieldX, an enhanced security feature for its wallet that aims to improve user fund protection and boost defenses against future attacks.
BingX paused deposits and withdrawals after identifying suspicious activity in its hot wallet. The exchange progressively restarted deposits, starting with the first phase on September 21 and continuing until October 8, when it stated that deposits for the platform’s over 600 cryptocurrencies had been fully restored.
While speculation stated that the hot wallet problem compromised more than $43 million in user assets, BingX’s staff declined to acknowledge this amount, claiming that the harm was minor and could be absorbed by its capital reserves. The exchange assured users that the majority of their cash was secure in a cold wallet, but others expressed concern and demanded greater transparency.
The incident was first reported by Peckshield, a blockchain security startup that stated BingX to look into potential hacker activities. Peckshield confirmed a transaction of around $13.6 million to an Ethereum address. In response, BingX implemented emergency measures, moving assets and suspending all transactions to prevent additional damage.
Commitment to User Security
Vivien Lin, BingX’s Chief Product Officer, highlighted the exchange’s commitment to strengthening user protection and the necessity of quick recovery after incidents like the one on September 20. BingX’s prompt response underscores our commitment to protecting user assets, with trust, efficiency, and transparency at the core of our strategy, Lin remarked. The release of ShieldX is a significant step toward strengthening the platform’s defenses.
Lin highlighted the exchange’s commitment to continued research and partnerships targeted at raising security standards in the cryptocurrency market. BingX also announced plans to expand threat monitoring in conjunction with major security organizations to enable faster vulnerability exploration. The platform will conduct regular audits and reward contributors for security enhancements through a hacker bounty program
The year 2024 has witnessed a significant increase in hacking events, with blockchain and web3 security firms reporting losses of over $2.1 billion. This amount has already surpassed the entire losses for 2023, highlighting the critical need for increased security measures throughout the business. As centralized finance continues to face serious risks, exchanges such as BingX are taking proactive measures to protect user funds and restore trust in the platform.
