BingX, a crypto exchange, has announced a security compromise on its hot wallet. This has given the exchange a perfect reason to set its disaster management and contingency plans into motion. 

Vivien Lin, the Chief Product Officer at BingX, confirmed in a post on X that hackers breached the exchange. Lin stated that the exchange’s technical team noticed unusual network traffic at 4 AM Singapore time. At BingX, security is always a top priority, and thus quick detection.

The team suspected that the attack targeted the exchange’s hot wallet upon the breach identification, and BingX started working on the emergency plan promptly.

BingX Moves Funds and Halts Withdrawals

Urgent actions planned in the light of the emergency plan were the transfer of the assets and suspension of withdrawals. Investigators are still determining the exact extent of the hack affecting BingX.

In the tweet, Lin disclosed that the company has a complex management structure that has multiple layers, which is a part of BingX’s operational strategy. She explained that most user funds are secured in cold wallets, with only a small amount kept in hot wallets for withdrawals.

To address security concerns at BingX, the team has halted withdrawals until further notice and is urgently inspecting the wallet services. We regret any inconvenience that may have arisen from the above actions. Deposits and payouts will be made within the timeframe of 24 hours at most, Lin explained.

Working on a Compensation Plan

Lin has advised its users that it is coming up with a compensation plan to refund users who lost their money as a result of the breach. She also pays an apology for the inconveniences that have resulted from the attack on BingX. The exchange has made a statement but has not shed much light on the hack issue. The team titled the announcement “Notice on Temporary Wallet Maintenance.”

Regarding this, BingX said that users may experience a delay in the time it takes to receive credits for deposits and withdrawals as the wallet system is currently under periodical maintenance. The exchange also suggested either depositing or withdrawing later. After Lin’s tweet, some users became worried, while others reacted with anger. The situation at BingX is being closely monitored by the team.