Binance Estimates $6.3 Billion Impact From Suspected Crypto Hack
Binance has paused withdrawals after a security incident that it estimates affected $6.3 billion in assets, while promising to cover losses and saying user funds are safe.
Binance says a security incident has had an estimated $6.3 billion impact, a figure that would make it a record cryptocurrency theft if confirmed, according to Engadget. The exchange has suspended withdrawals and says it will cover all losses. The amount taken, how much can be recovered and who carried out the attack remain under investigation.
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Withdrawals paused as estimates grew
Binance initially told TechCrunch on October 29 that it was investigating a potential security issue after users reported funds leaving the exchange’s wallets. Spokesperson Ross O’Leary said withdrawals had been temporarily suspended on multiple networks as a precaution. Binance also warned users to be wary of scams and requests for account information from unofficial sources.
TechCrunch reported that crypto watchers had identified at least $2 billion leaving Binance’s internet-connected wallets. It said some estimates put the possible loss above $5.7 billion, while cautioning that the numbers were unconfirmed and the theft might still be underway. In a later account cited by Engadget, Binance estimated the total impact at roughly $6.3 billion and said about $3 billion in affected assets had been frozen on-chain with help from blockchain partners. Binance said deposits were operating normally, although withdrawals remained frozen for a security overhaul.
Binance promises to cover losses
Binance said it would use its Secure Asset Fund for Users, known as SAFU, and company funds to cover losses, according to Engadget. It also maintained that user funds were safe. TechCrunch reported that Binance founder Changpeng Zhao, who no longer runs the exchange, said he expected users to be fully covered; he did not explain the basis for that expectation.
The outlets reported substantial asset freezes connected to the incident. Engadget put Tether’s freeze at $1.5 billion and Circle’s at $800 million. TechCrunch reported approximately $1.56 billion frozen by Tether and about $800 million by Circle.
Cause and attribution remain under scrutiny
Binance’s initial investigation suggests a compromised DevOps engineer’s laptop may have allowed an attacker to reach a service container and submit unauthorized withdrawal transactions, Engadget reported. That remains a preliminary account, not a confirmed explanation.
TechCrunch said on October 29 that the attacker’s identity was unclear. Engadget subsequently reported that security firm TRM Labs attributed the attack to TraderTraitor, a North Korean hacking unit, with high confidence. That is the firm’s assessment rather than a confirmed finding from Binance. If the $6.3 billion estimate holds, the breach would surpass the Bybit exchange hack last year; Engadget valued that theft at $1.5 billion, while TechCrunch put it at $1.4 billion.
Sources
This story was compiled by AI from the reports below. Read the originals for the full details.