Singapore-based cryptocurrency exchange BingX has resumed withdrawal services after suffering a major security breach that led to losses initially estimated at $26 million, but which have since doubled to $52 million. The exchange announced a phased reopening of withdrawal services, starting with major cryptocurrencies like USDT, BTC, ETH, Solana, Tron, and Circle’s USD stablecoin. BingX is also working with leading blockchain security firms to investigate the incident and recover stolen funds. The company has reassured its customers that it has sufficient reserves to cover any losses, highlighting its long-standing reputation in the industry.

Phased Resumption of Withdrawal Services

BingX has confirmed that withdrawal services for key digital assets, including Tether’s USDT, Bitcoin (BTC), Ethereum (ETH), Solana, Tron, and Circle’s USD stablecoin, have been restored. The exchange plans to gradually reinstate withdrawal services for other tokens and digital assets over the next two weeks. Additionally, BingX has informed its customers that deposit services will also resume in the coming weeks. Any withdrawal requests submitted before the service disruption have been canceled and must be resubmitted by the clients.

Impact of the Hack and Mitigation Efforts

In an update provided to Cointelegraph, BingX’s Chief Product Officer, Vivien Lin, explained that the financial impact of the hack was mitigated by the fact that the majority of client funds were secured in cold storage, which remained untouched by the breach. Lin also noted that $10 million in stolen funds have already been frozen. The exchange is actively collaborating with on-chain security firms, including SlowMist and Chainalysis, to investigate the breach and pursue fund recovery efforts.

Customer Assurance and Financial Stability

Lin reassured customers that BingX’s robust financial position, bolstered by sufficient reserves, allows the exchange to fully cover any potential losses from the attack. Citing BingX’s six-year history as a reliable service provider, Lin emphasized the company’s commitment to protecting customer assets and maintaining operational transparency in the face of this setback. The exchange's proactive stance and swift recovery measures are intended to restore customer confidence and reinforce its standing in the crypto market.

Details of the Security Breach

The security breach occurred on September 20 at around 4:00 AM Singapore time, when BingX’s systems detected abnormal withdrawals from one of its hot wallets. Initially downplayed as a minor incident, the extent of the hack was later revised to reflect $52 million in stolen funds. BingX’s response has included a comprehensive review of its security protocols, bolstered by partnerships with leading cybersecurity firms to prevent future incidents.

What Can We Expect from BingX in the Future

1. Ongoing Investigations and Potential Fund Recovery
As BingX continues to collaborate with security firms like SlowMist and Chainalysis, further developments may emerge regarding the recovery of stolen funds. The success of these efforts will be crucial in mitigating the overall impact of the breach on both the exchange and its clients.

2. Implementation of Enhanced Security Measures
In response to the breach, BingX is expected to enhance its security infrastructure significantly. These improvements will likely include additional layers of protection for hot wallets, more rigorous monitoring protocols, and advanced threat detection systems to safeguard against future attacks.

3. Market Reactions and Customer Confidence
BingX’s handling of the breach, including its commitment to reimburse losses, will play a pivotal role in shaping market perception and customer confidence. The exchange’s ability to maintain transparency and provide timely updates will be key factors in its recovery and continued growth in the competitive crypto landscape.