Crypto Exchange Investigates Potential Security Breach Affecting Hot Wallet

BingX, a cryptocurrency exchange, has alerted users to a possible security breach involving its hot wallet, leading to the activation of emergency protocols.

Vivien Lin, the Chief Product Officer, shared that the exchange’s tech team detected unusual network activity early in the morning Singapore time, prompting immediate action.

In response, BingX quickly transferred assets and suspended withdrawals, acknowledging a “minor asset loss” while still assessing the full impact.

Lin reassured users that the majority of funds are secured in cold wallets, with only a small amount in hot wallets for transactions. Withdrawals are temporarily halted for security checks, with a goal to resume them within 24 hours.

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The exchange is formulating a compensation plan for affected users, although specific details about the breach remain vague. Users have voiced concerns, especially those whose withdrawal requests were pending prior to the incident.

Analysts have noted suspicious activity linked to Kyberswap, but the full scope of the breach and funds involved are still under investigation.

Alexander Stefanov