BingX, a Singapore-based cryptocurrency exchange, has confirmed a security breach. The incident resulted in "minor asset loss," according to company officials.
Vivien Lin, BingX's chief product officer, disclosed the attack. It occurred around 4 am Singapore time on September 20 when the technical team detected "abnormal network access" to BingX's hot wallet.
"We immediately started our emergency plan," Lin stated on X (formerly Twitter). This included urgent asset transfers and withdrawal suspensions.
Lin emphasized that BingX keeps minimal funds in hot wallets. The exact loss amount is still being calculated.
Earlier, blockchain security firm PeckShield reported suspicious outflows. They estimated losses at over $13.5 million. But analytics platform Lookonchain suggested a higher figure of $26 million.
BingX has temporarily halted withdrawals. They expect to restore services within 24 hours. The exchange is conducting an "emergency inspection" and strengthening wallet security.
Lin assured users that BingX would "fully compensate" for the losses. She stated that user assets remain safe, and the company maintains the loss is "minimal and manageable."
A BingX spokesperson told Cointelegraph they are still assessing the situation. "We will announce the details soon," they added.
Critics have questioned BingX's transparency. Harrison Leggio, co-founder of crypto startup g8keep, challenged the exchange's initial "wallet maintenance" explanation.
Blockchain data shows millions in various tokens transferred from a BingX hot wallet. The recipient address held over $9.5 million across nine blockchains at the time of reporting.
Recent transactions suggest attempts to obscure fund origins. Small amounts have been moved through decentralized exchange Kyberswap, a common tactic among hackers.
The incident highlights ongoing security challenges in the cryptocurrency sector. It underscores the importance of robust security measures for digital asset exchanges.