Major Asset Loss at Crypto Exchange BingX Due to Breach: $52 Million in Losses Reported

Crypto exchange BingX confirmed a “minor asset loss” after detecting suspicious outflows from one of its hot wallets, sparking concerns in the cryptocurrency community. The breach, which occurred around 4:00 A.M. Singapore time, has left users worried about the security of their funds.

According to BingX’s Chief Product Officer Vivien Lin, the exact amount stolen is still being evaluated. However, blockchain security firm Cyvers estimates the breach caused over $52 million in losses, with most assets already swapped. The affected chains include Ethereum, Binance Smart Chain, Base, Optimism, Polygon, Arbitrum, and Avalanche.

Hakan Unal, Senior Security Operations Lead at Cyvers, raised concerns about the attacker’s tactics, stating that they bear similarities to North Korea-backed malicious actors. Unal highlighted the hacker’s rapid asset-swapping moves, which are consistent with past Lazarus operations.

In response to the breach, BingX temporarily suspended withdrawals to conduct an emergency inspection and strengthen its wallet security. Lin reassured users that withdrawals would resume within 24 hours and emphasized the exchange’s layered management system, which prioritizes cold wallets for asset storage.

The incident at BingX is part of a growing trend of hackers targeting centralized exchanges (CEXs). Recent attacks on platforms like Japan’s DMM Bitcoin, India’s WazirX, and Indonesia’s Indodax have raised concerns about the security of user funds. Security experts have linked these hacks to North Korean actors, who are believed to have stolen over $3 billion in digital assets over the past seven years.

Despite the breach, BingX has promised to fully compensate for any losses from its capital and assured users that their assets remain secure. The incident serves as a reminder of the importance of robust security measures in the cryptocurrency industry.