Bingx Resumes USDT Withdrawals Amid Security Concerns After $52 Million Hack

• Bingx announced on Sept. 21 that it would resume withdrawals as planned, beginning with USDT, USDC, BTC, and ETH on the BSC network.
• USDT withdrawals on the Tron network were also scheduled to resume at 08:30 (UTC+8) on Sept. 21, although delays were expected due to ongoing security reviews.
• The platform had experienced a breach allowing hackers to steal funds, with speculative reports of $52 million in losses.

After a recent security breach, Bingx announces the resumption of withdrawals, underscoring the ongoing security initiatives within the Web3 space.

Bingx Resumes Withdrawals Following Security Breach

On September 21, Bingx confirmed that it would restore withdrawal services, starting with major cryptocurrencies like USDT, USDC, BTC, and ETH on the BSC network. The platform also planned to resume USDT withdrawals on the Tron network at 08:30 (UTC+8) on the same day. Despite the announcement, the exchange cautioned that some withdrawals might experience slight delays due to ongoing security reviews.

Details of the Breach and Financial Impact

Just over 24 hours prior, Bingx had confirmed a security breach, which allowed hackers to access and steal funds from their hot wallet. Initially, the incident was downplayed, but security firm Cyvers estimated that the hackers could have stolen digital assets valued at $52 million. In a subsequent update, Vivien Lin, Chief Product Officer of Bingx Labs, clarified that the platform’s operations remained unaffected and that the losses were covered within the exchange’s capital reserves, though she did not endorse Cyvers’ loss estimate.

Addressing User Concerns and Industry Implications

Vivien Lin emphasized that malicious actors are detrimental to the growth of the Web3 space and contribute to user skepticism. During a recent conversation at Token 2049, Lin discussed with other industry leaders the necessity of bolstering security to transition the crypto industry from a niche market to mainstream acceptance. This dialogue highlighted security as the cornerstone for the industry’s sustainable development.

Steps Taken to Restore Confidence and Services

Bingx assured users that it would gradually reinstate withdrawal services for a broader range of digital assets over the next one to two weeks. The exchange also mentioned that pending withdrawal requests had been canceled, advising users to submit new requests. This move aims to mitigate any potential issues and restore user confidence in the platform.

Conclusion

In summary, Bingx’s expedited efforts to resume withdrawal services signal a robust response to a significant security incident. While the platform portrayed confidence in its operational integrity and financial resilience, the broader dialogue about crypto industry security continues to gain urgency. Users and stakeholders are reminded that security remains pivotal for the continued growth and mainstream adoption of cryptocurrency platforms.