BingX cryptocurrency exchange loses over $52 million to hot wallet hack

The BingX cryptocurrency exchange has lost over $52 million to a hot wallet hack that occurred around 4 pm UTC+8 in Singapore. BingX has frozen transfers and initiated emergency procedures to minimize losses. Additional processing time and security checks have been added to BingX cryptocurrency accounts, with cybercoin transactions taking up to 24 hours to complete.

Cryptocurrency like Bitcoin can be stored in a digital wallet. Online or hot wallets are connected to the internet while cold wallets are not connected to the internet. This is much like storing cash at a bank that has online account access versus cash stuffed under a mattress.

Hackers around the world target cryptocurrency exchanges that have hot wallets and use various methods to invade systems to extract cybercoins in seconds. Readers who have invested in cryptocurrency should consider using an offline cold wallet, like the Ledger (here on Amazon) or Trezor (here on Amazon), to better protect their cryptocoins from theft.

Reportedly, over $52 million was lost during the hack, according to Hakan Unal at Cyvers Alerts, a company that focuses on Web3 security. CPO Vivien Lin noted in the latest BingX AMA that $10 million of the stolen funds have been frozen from transfer, and the company is attempting to recover the remaining stolen cybercoins. Improvements to the BingX systems will take several weeks to fully implement.