As criminals shift their focus to the crypto industry, companies have invested heavily to secure customer funds. In an October 24 update, the Singapore headquartered crypto exchange BingX unveiled a wallet dubbed ShieldX. The newly launched wallet comprises multiple security layers to prevent unauthorized access. The launch came months after BingX suffered a malicious attack that resulted in a loss of $52 million.
The security breach left many devastated and forced the crypto exchange to implement adequate security measures.
BingX Unveils ShieldX to Protect Users from Threats
In a blog post, the BingX team explained that ShieldX will protect the customer’s funds from potential threats. During the advanced development stages of ShieldX, the BingX team collaborated with leading security firms to integrate additional security measures.
At this stage, the team behind ShieldX engages in various monitoring and assessment practices to detect potential external threats. The ShieldX team vowed to regularly monitor the wallet security performance to prevent future security threats.
A statement from the chief product officer at BingX, Vivien Lin, reveals that the launching of ShieldX demonstrated the company’s commitment to enhancing its defence mechanism. The executive recalled the disastrous event on September 20 when the bad actors gained access to BingX’s hot wallet, draining $52 million.
He regretted that the severity of the attack compromised various chains of the platform, including Ethereum, BNB Chain, Base, and others. The damages caused by the attack forced the BingX team to suspend operations and withdraw services during the downtime.
Hours after the attack, the crypto exchange resumed operation and vowed to refund the affected customers. The BingX team proceeded with the investigation to trace the stolen fund.
BingX Seeks to Protect User’s Funds
Even though the funds were not recovered, the probing team noted that the hackers stole over $52 million. The damages caused by the attack forced the crypto exchange to launch a bounty program to reward individuals or entities who will support the recovery of the stolen funds.
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Also, BingX vowed to reward experts who would identify the vulnerability used by hackers to gain access to the hot wallet. Even though the funds locked in cold wallets remain untouched, the BingX team has been working to strengthen its security measures.
With the new development, BingX anticipates ShieldX to mitigate potential threats that might happen in future.
Besides the security breach, BingX has been on the regulator’s watch for bypassing the Western sanction.
The crypto exchange was accused of facilitating crypto transactions for Iranian users, which was against international sanctions. The authority alleged that the BingX team had an Iranian website operating against the law.
The BingX admitted to supporting the Iran crypto transaction since the exchange had no problem with Iranian investors.
The regulators noted that the crypto exchange supported the swaps of Iranian rial to Tether (USDT) stablecoin, which was against the United States Treasury Department’s Office of Foreign Assets Control (OFAC) rules.
Despite the legal charges, BingX supports $300 million daily crypto transactions, ranking among the fast-paced crypto exchanges.
The exchange boasts of having a sustainable customer base of over 10 million active users across the globe. Its popularity has increased as it offers diverse crypto products, including copy trading, asset management, and derivatives.
Conclusion
Launching the ShieldX platform demonstrates the need for the crypto exchange to protect customers’ funds. Being a hacking victim, BingX understands how a security breach damages the company’s reputation and customers’ confidence.
Ranking among the top 20 best-performing crypto exchanges, it’s important for BingX to strengthen its security protocol.
For more updates on how the BingX team seeks to protect customers from exploitative business activities, follow The Bitjournal on X, Telegram, and LinkedIn.
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