This week has been a week of turmoil and developments in the cryptocurrency space. The $42 million BingX hack shook the markets and raised questions about security vulnerabilities at major exchanges. Meanwhile, the controversial Hamster Combat (HMSTR) airdrop sparked outrage as millions of players were disqualified from receiving tokens.
These events highlight the promise and risks of the industry as it continues to evolve and attract the attention of regulators and innovators.
BingX Restores Service After $42 Million Crypto Hack
On September 20, cryptocurrency exchange BingX was hacked , resulting in the loss of over $42 million in digital assets.
Initially, suspicious transactions worth $13.6 million were discovered. As further investigations were conducted, the losses grew to over $26 million, ultimately reaching $42 million.
Read more: Cryptocurrency Project Security: Early Threat Detection Guide
The stolen assets included 4.44 million USDT ($4.4 million USD), 1 million WUSD ($1 million USD), 608,660 USDC ($608,660 USD), and 9.38 BTCB ($590,000 USD) in various cryptocurrencies. PeckShield and other security experts confirmed that the attackers transferred the funds to a wallet address identified as ‘0xF7e8’. On-chain data shows that the bad guys quickly exchanged the stolen assets for Ethereum (ETH) and BNB.
Despite the huge loss, BingX's Chief Product Officer Vivien Lin assured users that the company will fully compensate them with its capital reserves.
“Our technical team detected abnormal network access and suspected a hacker attack on BingX’s hot wallet. We immediately initiated emergency plans, including halting asset transfers and withdrawals. There was a small loss of assets, but the amount was small and is still being calculated,” Lin wrote on X (Twitter).
After this incident, BingX resumed its services . Withdrawals of major assets, Bitcoin (BTC) and USDT, resumed on September 21, and full deposit services were restored on September 22.
Hamster Combat (HMSTR) Airdrop: Controversy Unfolds
Hamster Combat, a popular tap-to-un game on Telegram, faced a massive backlash this week when it disqualified more than 63% of its players who were expecting an airdrop of HMSTR tokens. The airdrop, scheduled to begin on September 26, was intended to distribute 60 billion tokens to the 131 million eligible players of the game’s first season.
However, the controversy began when Hamster Combat introduced anti-cheat measures at the last minute. This new approach led to the banning of 2.3 million accounts for allegedly exploiting the game's reward system.
Many players who had spent time accumulating Points Per Hour (PPH) were suddenly disqualified, a decision that sparked outrage on social media.
The controversy deepened as the price of the HMSTR token fluctuated significantly after trading began on major exchanges. It initially started trading at $0.014, but fell 20% to $0.011 within a few hours. As market sentiment worsened, the price continued to fall, reaching around $0.0068506.
Despite the backlash, Hamster Combat developers are confident that their anti-cheat system will ensure a fair distribution of rewards. Despite the significant drop in token value, the developers are optimistic about the long-term prospects.
Kamala Harris Supports Cryptocurrency and AI in Campaign Speech
U.S. Vice President and Democratic presidential candidate Kamala Harris made a splash in the tech and cryptocurrency industries this week when she spoke at a fundraising event in New York City and directly supported cryptocurrencies for the first time. Harris stressed that fostering innovation in AI and digital assets is crucial to maintaining America’s global competitiveness.
“We will invest in American competitiveness, we will invest in America’s future. We will protect consumers and investors while encouraging innovative technologies like AI and digital assets,” she said .
The statement marks a significant shift in Harris’s policy platform, bringing her in line with leading figures in the crypto industry such as Ripple Labs co-founder Chris Larsen. A proponent of blockchain regulation, Larsen believes Harris’s stance could help drive much-needed regulatory clarity in the digital asset space.
Binance denies alleged data leak involving 13 million users
This week, rumors have been circulating about a potential data breach affecting 13 million users of Binance, one of the world’s largest global cryptocurrency exchanges. Reports have surfaced on dark web forums claiming that a group of cybercriminals known as “Greavys” gained access to sensitive user information, including names, email addresses, phone numbers, and residential details.
This alleged data was reportedly sold through a Telegram channel, sparking concerns within the Binance community. However, Binance quickly responded to these claims, denying any data leak.
“Our security team has thoroughly investigated this issue and there is no evidence of any data breach. We remain committed to protecting our users’ information,” a Binance spokesperson told BeInCrypto.
CZ prepares for early release after serving time on Binance-related charges
Binance co-founder and former CEO Changpeng Zhao (CZ) is set to receive early release from federal custody after serving a four-month sentence. CZ was jailed for violating the Bank Secrecy Act by failing to implement sufficient know-your-customer (KYC) measures at Binance.
CZ's release was originally scheduled for September 29. However, due to federal rules allowing early releases if the official release date falls on a weekend, recent reports indicate he will be released earlier, on September 27 .
CZ initially faced a 36-month sentence, but his sentence was significantly reduced through a settlement with the U.S. Department of Justice (DOJ).
Despite his legal issues, CZ is still a very influential figure in the cryptocurrency industry, and many in the industry expect him to focus on new ventures in blockchain, artificial intelligence, and biotechnology.
Read more: Who is Zhao Changpeng (CZ)? An in-depth look at the former Binance CEO
Despite his legal troubles, his work at Binance is still considered pivotal in the growth of global crypto liquidity. CryptoQuant CEO Kiyoung Joo commented on CZ’s influence:
“Don’t underestimate CZ. He deserves respect for his contributions. Binance has had its challenges, but CZ’s achievements far outweigh his mistakes,” Zhu said.
