CoinMarketCap: Read what our contributors have to say. This content is provided by the community. DYOR!
BingX Exchange Hacked: Loss of $43 Million in Security Breach
Market Musing-g

BingX Exchange Hacked: Loss of $43 Million in Security Breach

Todayq News
By Todayq News
4 months ago
4 mins read
BingX Exchange Hacked: Loss of $43 Million in Security Breach

Crypto exchange BingX suffers from a hack and more than $43 million were stolen from the platform. Such incidences like the BingX hack have shaken the entire crypto-currency market especially the exchanges and had raised question on the security of exchanges.

The hack has been made known through on-chain data which gave an insight into the type of attack that actually occurred and why storing large amounts of Crypto require decentralizing exchange platforms. 

The BingX Hack Unfolds 

BingX a reputed crypto exchange platform that exposed the hack attack on September 20, 2024, which led to humongous losses from user’s fund. An analysis of on-chain metrics revealed that worth more than $43 million in BTC, ETH, and other tokens like stablecoins have been stolen from BingX wallets. The actions that have been taken by the exchange as a result of the hack have been rather quick, since they paused withdrawals to minimise the loss and ensure all of the circumstances surrounding the hack are explored. 

BingX continues to collaborate with blockchain security companies and police forces to identify the fraudsters and maybe, regain some of the lost investments. It is not the first time hackers attacked a crypto exchange, nevertheless, the scope of this attack demonstrates that cyber criminals have grown to be more professional in terms of taking advantage of vulnerabilities. 
On-Chain Data Reveals Insights on BingX Hack

Blockchain provides transparency whereby people can follow the funds through the blockchain in real-time. On-chain data enabled analysts to gain more information on the BingX hack such as the flow of coins from the exchange wallet to other wallets. This transparency has therefore greatly helped in reveal the extent of the hack and also the leads for follow up investigations. 

However, there are certain risks associated with it of which getting the stolen money back is quite difficult as hackers use various methods to hide it. Some of these methods include the process of ‘chashing’ that involves moving the stolen assets between another wallet, the use of mixing services well known for breaking links between transactions or converting the stolen assets to Monero, a type of privacy coin that is quite hard to trace out of the various stealing procedures. 

Rising Awareness on Exchange Security 

This BingX hack is part of a much bigger problem with the cryptocurrency environment — the safety of centralized trading platforms. Although exchanges have features of attractiveness such as convenience and liquidity, it has a disadvantage of having a single point of failure. Exchanges are vulnerable to hackers because these institutions have centralized wallets with billions of digital assets. 

To manage these risks some of the exchanges are implementing elaborate security features like the multi sig wallet, hardware security module and insurance. However, such measures differ in their efficiency, and such heists and cyberscams as BingX hack show that the threats are still present. 

Influence on the Crypto Marketplace 

The BingX hack may be able to affect the cryptocurrency markets in the short term where the assets in the cyber-attack were affected. Such incidences have the effect of upsetting investors, thus short-term selling in the market. In the same breadth, the hack may affect the reputation of BingX and other centralized exchanges, thus leading to an increased adoption of decentralized exchanges (DEXs) and self–custody solutions. 

Following the hack BingX has announced that funds will be protected through insurance and it is doing everything it can to strengthen security in the future. Nevertheless, this is a perfect example of how centralized exchanges pose certain inherent risks which the crypto community needs to be protective of. 

The other major event, which took place in digital currency exchanges, is the BingX hack through which the attackers managed to steal more than $43 million, which is the grim evidence of the continued vulnerability of centralized crypto exchanges. Currently, investigations are under way thanks to the transparency supported by the blockchain technology, however the situation is a vivid example of how urgent it is to be on guard in the constantly changing environment of cryptocurrencies.

0 likes
|

Other articles published on Sep 20, 2024

Market Musing-g

Coinbase Premium Negative Again: What Does This Mean?

CryptoQuant analyst indicates strong buying pressure on Binance (BNB) as BTC price targets $64,000
By U_Today
4 months ago
3 mins read
Market Musing-g

Securitize adds Wormhole for multi-chain RWA tokens

Securitize integrates Wormhole to enable cross-chain RWA token transfers, aiming for sub-second transactions and broader blockchain adoption for tokenized assets.
By Cointelegraph
4 months ago
3 mins read
Market Musing-g

BingX Faces Major Security Breach, Withdrawals Paused as Hackers Steal Over $40 Million

Singapore-based crypto exchange BingX has suspended withdrawals following the detection of a potential hacker attack targeting its hot wallet, with blockchain analysts estimating the losses to exce...
By DeFi Planet
4 months ago
3 mins read
Market Musing-g

BNY Mellon SAB 121 exemption may herald bank Bitcoin custody

Bank of New York Mellon, the largest U.S. custodian bank, scored an exemption from a controversial SEC rule that may enable Bitcoin custody. Institutional custody of Bitcoin (BTC) and cryptocurrenc...
By crypto.news
4 months ago
3 mins read
Market Musing-g

Will Altcoin Season Begin? Analytics Company Gives Its Opinion

Is there a possibility of a rally on the altcoin side after the FED makes a big interest rate cut? The analysis company shared. Continue Reading: Will Altcoin Season Begin? Analytics Company Gives ...
By Bitcoin Sistemi EN
4 months ago
1 min read
Market Musing-g

Behind Bars in Nigeria: The Story of a Binance Executive’s Ordeal

Binance is actively working to secure the release of its executive, Tigran Gambaryan, from Nigerian custody. Citing Gambaryan’s declining health and the Nigerian government’s allegedly unfair treat...
By Coin Edition
4 months ago
2 mins read

Join the thousands already learning crypto!

Join our free newsletter for daily crypto updates!