Crypto exchange Binance freezes assets after $6.3 billion security breach
Oct 29 - Binance, the world's largest cryptocurrency exchange, said a security breach had resulted in an estimated $6.3 billion impact that analysts said could amount to the biggest crypto heist ever and might make investors rethink the risks of owning digital assets.
uncertain
investors → freeze → assets
Binance said it had worked with partners to freeze the affected assets, with about $3 billion located so far.
asserted
billion → say → assets
It gave no update on the status of the remaining $3.3 billion as Binance co-founder Yi He said the company would cover "all hacking losses".
asserted
company → give → losses
An initial investigation suggested the breach may have started with a hacked laptop belonging to one of its engineers, which let an attacker gain access to one of its systems and make unauthorized withdrawals, Binance said.
uncertain
Binance → suggest → withdrawals
Markets reacted immediately in early Asian trading on Friday.
asserted
Markets → react → Friday
Bitcoin dropped more than 3% to a six-week low of $76,368 and ether fell more than 3% to a two-month low of $2,178.
asserted
ether → drop → 2,178
BNB, a token originally launched as Binance Coin that can be used to pay Binance fees, was down 5% over the past 24 hours at $709.70, according to market aggregator CoinGecko.
uncertain
that → launch → CoinGecko
Shares in crypto exchange Coinbase Global slid 4.8% while those of bitcoin buyer Strategy fell nearly 6% in extended US trading.
asserted
those → slide → trading
The incident could be the world's biggest crypto heist, according to analytics firm Chainalysis and other industry experts.
uncertain
incident → accord → Chainalysis
"It's the biggest hack in history," said Aravind Srinivasan, head of large crypto market maker GSR's systematic OTC business.
asserted
Srinivasan → say → business
Beyond the potential loss of assets, the security breach was likely to have wider ramifications for crypto, which had already been under pressure lately due to higher US interest rates and softer demand from exchange-traded fund buyers, analysts said.
asserted
analysts → have → buyers
"It may further dampen risk appetite and prompt investors to reassess the safety of assets held on centralized exchanges, as well as counterparty, solvency and liquidity risks," said Tim Sun, senior researcher at HashKey Group, based in Hong Kong.
uncertain
Sun → dampen → Kong
Binance, which allows users to buy, sell and trade digital assets, has 335 million registered users globally and had about $162.8 billion in assets under custody as of the exchange's 2025 annual report.
asserted
users → allow → report
"User funds remain safe," Binance said in a statement.
asserted
Binance → remain → statement
"As a precaution, all deposits and withdrawals are temporarily suspended while our security teams conduct checks, secure wallet infrastructure, and trace affected assets, with the close support of our law enforcement and industry partners.
asserted
teams → suspend → enforcement
"
BINANCE HAS SECURE ASSET FUND
Binance runs a secure asset fund for users, which is a reserve held entirely in bitcoin that is intended to protect user assets in cases of security breaches, according to its website.
uncertain
that → run → website
"It's becoming very hard to counter hacks as AI can find vulnerabilities faster than you can fix them," said Bernardo Brites, CEO of Trace Finance, a payments and stablecoin infrastructure company.
asserted
Brites → become → Finance
"My view is that users will move away from smaller and medium-sized exchanges, (it is) becoming too risky to park your money somewhere that couldn't cover a hack of meaningful size."
asserted
that → move → size
Stablecoin issuer Tether said it had frozen nearly $1.57 billion in assets linked to the incident, while Circle froze more than $800 million.
asserted
Circle → say → million
World Liberty Financial, a crypto company linked to US President Donald Trump and his family, said on Thursday it had worked with cryptocurrency custodian BitGo to freeze funds stolen in what it described as a Binance hack.
asserted
it → link → hack
Binance's Yi said $27 million in stablecoins and about $2 million worth of World Liberty tokens had been frozen.
asserted
million → say → tokens
Crypto firm Ripple also froze roughly $200 million in funds, Yi said.
asserted
Yi → freeze → funds
Jack McDonald, senior vice president of stablecoins at Ripple, said the company was closely monitoring reports of a potential exploit involving Binance and was freezing affected funds and coordinating with relevant parties.
asserted
company → say → parties
INCIDENT ADDS TO STRING OF CRYPTO THEFTS
asserted
INCIDENT → add → THEFTS
Miguel Morel, CEO of blockchain intelligence firm Arkham, said data indicated that billions of dollars appeared to have been hacked from Binance by an unknown actor.
asserted
billions → say → actor
The incident adds to a string of crypto thefts.
asserted
incident → add → thefts
Last year, attackers stole $2.9 billion worth of cryptocurrency across nearly 150 attacks, according to researchers at TRM Labs.
uncertain
attackers → steal → Labs
In September, cryptocurrency exchange Bitget said roughly $350 million in crypto had been stolen from its platform, underscoring the industry's vulnerability to hackers.
asserted
million → say → hackers
Authorities have warned that organised crime groups are increasingly using cryptocurrencies to move funds across borders outside the traditional financial system.
asserted
groups → warn → system
Binance.US, a separate cryptocurrency exchange, said it was not affected by the security incident.
asserted
it → say → incident
Coinbase said it was unaffected and was monitoring the situation.
asserted
it → say → situation
In an unrelated incident earlier on Thursday, prediction market operator Polymarket temporarily halted trading after a security incident involving a third-party provider.
asserted
Polymarket → halt → provider
It later resumed trading and said it would fully reimburse affected traders.
asserted
it → resume → traders
The Aporia
