Bingx Halts Withdrawals After $52 Million Hack, Possible Ties to North Korea’s Lazarus Group

• On September 20, Bingx, a prominent Asian cryptocurrency exchange, announced a temporary suspension of withdrawals following a hacking incident.
• While initial assessments indicated “minor asset loss,” further analysis revealed the hack could have resulted in losses as high as $52 million.
• Chief Product Officer Vivien Lin assured users that only a small portion of assets were affected, emphasizing that the majority remained secured in cold storage.

Bingx’s recent hack, with potential losses reaching $52 million, underscores the urgent need for enhanced security measures in the crypto space.

Bingx Exchange’s Recent Cyber Security Breach

The Asian cryptocurrency exchange Bingx faced a significant security challenge on September 20, prompting a suspension of all withdrawal activities. Initially perceived as a minor setback, the incident unraveled into a far more substantial loss than anticipated, with cybersecurity firm Cyvers estimating the damage at around $52 million. This figure starkly contrasts with the earlier $26 million projection made by other forensics specialists.

Company Response and Assurance to Users

In addressing these alarming developments, Vivien Lin, the Chief Product Officer at Bingx, provided reassurances to the exchange’s user base. Lin clarified that the majority of the exchange’s assets were protected in cold storage, a more secure environment compared to hot wallets. The decision to halt withdrawals was a precautionary measure designed to allow a comprehensive security review and enhancement of the wallet services. She committed to resuming withdrawal functionalities within a 24-hour window.

Analysis and Attribution to the Lazarus Group

Hakan Unal, Senior Security Operations Lead at Cyvers, defended their higher loss estimate by citing an extensive examination of the hack across all impacted chains. This thorough approach provided a more precise loss figure. Unal also noted the possible involvement of the North Korea-linked Lazarus Group, a notorious hacking collective, in this attack. He mentioned that the methods employed by the hackers—utilizing multiple wallets to convert altcoins to ETH and BNB before consolidation—mirrored past Lazarus Group operations. Although definitive links remain unverified, the resemblance is striking.

Broader Implications for Crypto Exchange Security

This incident is not isolated. The suspected involvement of the Lazarus Group in similar attacks, such as those on the Indonesian exchange Indodax and Indian exchange Wazirx, among others, collectively indicates a pattern of sophisticated cyber threats targeting Asian crypto exchanges. For instance, Indodax suffered losses of approximately $20.5 million, while Wazirx and DMM Bitcoin encountered thefts of $230 million and 4,500 bitcoins ($300 million) respectively.

These repeated breaches highlight the necessity for advanced and robust security practices within the cryptocurrency exchange sector, particularly in Asia, where such incidents appear to be increasingly frequent and severe.

Conclusion

In summarizing, the recent cyber-attack on Bingx and the estimated $52 million loss emphasize the critical need for heightened security measures in the cryptocurrency landscape. Vigilance, advanced cybersecurity protocols, and continuous improvement are paramount to safeguarding digital assets. The industry’s progression hinges on the ability to adapt and fortify against sophisticated threats, ensuring user confidence and the overall stability of the crypto market.