Binance halts deposits, withdrawals after $6.3 billion breach

Binance halts deposits, withdrawals after security breach; impact estimated at $6.3 billion

New Delhi, Oct 30

In a statement, the world's largest crypto exchange said its initial investigation suggests the incident may involve a compromised DevOps engineer's laptop which allowed an attacker to gain access to a service container and submit unauthorised withdrawal transactions.

"We have found no evidence of any wallet private key leak. We will share a detailed technical post-mortem once the investigation is complete and the facts are fully verified," Binance said.

The exchange said it has worked with blockchain partners to freeze affected assets, with about $3 billion frozen on-chain so far.

Binance will cover all losses from the SAFU fund and the company's funds, while user funds are safe.

"The estimated total impact sits at around $6.3B. We have worked with blockchain partners to freeze affected assets, with about $3 billion frozen on-chain so far. The crypto exchange platform further said that it will publish an updated 'Proof of Reserves' once remediation is complete." Binance said in a statement.

"As an immediate precaution, temporarily suspended deposits and withdrawals while security checks are completed," it said.

"Revoked the affected address authorisation and engaged law enforcement and blockchain intelligence partners to trace and recover funds," the exchange added.

According to the exchange, their teams are working around the clock to resolve this issue safely and thoroughly.

"We are working closely with our law enforcement partners to confirm the identity of these criminals and bring them to justice," the exchange said.

Additionally, Bitcoin slumped below $77,000 to its lowest level since September after the disclosure with other tokens also selling off amid fears the suspected hack may become the biggest crypto heist ever, surpassing the $1.5 billion Bybit hack in February 2025.

— IANS