BingX fully restores its services after the hot wallet incident, ramping up security with ShieldX

BingX announced on October 24 that all its services had returned to full scale after the hot wallet incident on September 20. The centralized exchange also introduced a new upgraded firewall for its wallet, ShieldX, to increase user fund security and create a better defense against outside attacks. 

The exchange paused deposits and withdrawals immediately after noticing suspicious activity in its hot wallet. BingX then gradually resumed deposits, with the first phase rolling out on September 21. The process continued until October 8, when the exchange announced the resumption of deposits for over 600 cryptocurrencies offered on the platform. 

The BingX hot wallet incident was speculated to have compromised over $43 million of user funds. However, the exchange’s team did not confirm the amount, saying the damage was minimal and could be covered by its capital. BingX also insisted that most of its user funds were secure in a cold wallet. Some users did not believe the report, demanding more openness from the exchange. 

The incident was first reported by Peckshield, a blockchain security firm, asking BingX to check for suspicious activity that could have been from a hacker. Peckshield confirmed a transaction worth approximately $13.6 million to an Ethereum address. BingX initiated an emergency action to curb severe damages by conducting asset transfers and halting all transactions. 

BingX assures users of its dedication to security

BingX’s Chief Product Officer, Vivien Lin, commented that the exchange was continuously dedicated to improving user protection. Lin also insisted on the need for swift recovery after incidents like the one on September 20. 

“BingX’s quick response highlights our dedication to safeguarding user assets, with trust, efficiency, and transparency at the heart of our approach. The launch of ‘ShieldX’ marks a crucial step in proactively strengthening our platform’s defenses.”

Vivien Lin, Chief Product Officer at BingX

BingX’s chief product officer reiterated that the exchange’s priority was to initiate continuous developments and partnerships to improve the platform. Lin further confirmed its plans to initiate partnerships with industry leaders to create higher security standards for the crypto world. 

The exchange also assured increased threat monitoring in partnership with top security firms to ensure quick vulnerability detection. BingX also revealed that the platform would undergo frequent auditing. The platform further mentioned the introduced hacker bounty program, offering rewards to parties involved in improving security.

2024 records high hacking incidents 

Several reports from blockchain and web3 security firms have indicated a significant rise in blockchain exploits in 2024. According to the blockchain security firm Cyvers, hacking incidents have cost users over $2.1 billion in 2024. 

The number recorded by the end of September is significantly higher than 2023’s $1.69 billion for the full year. The firm also indicated that 2024 recorded over 130 exploit incidents, rivaling 2023’s 44 incidents. The report confirmed that centralized finance has suffered more than decentralized finance. 

CetriK reported similar figures in its Q3 report, confirming that the losses recorded so far in 2024 have hit $2 billion. The CetriK Q3 report identified Ethereum as the main target for attacks this year. 

In Q3, attackers have taken over $750 million from crypto addresses, with crypto phishing scams draining over $46 million. Ethereum’s losses were approximately $383 million.