Binance says it will cover losses from a cyberattack estimated at $6.3 billion.
Binance pledges to cover customer losses as blockchain partners freeze assets and investigators examine a possible laptop breach.
Binance estimates that a cyberattack caused losses of around $6.3 billion, potentially the largest cryptocurrency theft on record. The exchange has suspended withdrawals but pledged to cover all losses.
The Binance hack would surpass last year’s $1.5 billion theft from Bybit if the estimate proves accurate. Meanwhile, Binance says customers can still make deposits as it overhauls security.
The company said it had worked with blockchain partners to freeze roughly $3 billion in affected assets. It also promised to use its Secure Asset Fund for Users, known as SAFU, alongside company funds to cover losses.
Binance hack prompts asset freezes
Cryptocurrency platforms Tether and Circle said they had frozen funds linked to the attack. Tether put its total at $1.5 billion, while Circle reported freezing $800 million.
These freezes form part of efforts to contain the financial impact as investigators trace the stolen funds. Binance has assured customers that their money remains safe, despite the temporary withdrawal suspension.
The exchange’s initial investigation points to a potentially compromised laptop belonging to a DevOps engineer. Binance said the breach may have allowed an attacker to enter a service container and submit unauthorised withdrawal transactions.
However, the company described that route as an initial finding rather than a confirmed explanation. Its security overhaul comes alongside efforts with blockchain partners to freeze affected assets.
Researchers attribute attack to North Korean unit
Security research firm TRM Labs attributed the attack to TraderTraitor, a North Korean hacking unit. The firm expressed high confidence in its assessment, citing intelligence from both blockchain activity and other sources.
TRM Labs also said it was tracking the funds and alerting partners through its Beacon Network. The network tracks cryptocurrency crime in real time.
Meanwhile, HashKey Group senior researcher Tim Sun warned that the theft could weaken investors’ appetite for risk. He said it could also lead investors to reconsider the safety of assets held on centralised exchanges.
Sun additionally highlighted concerns about counterparties, solvency and liquidity. His assessment points to potential wider market consequences beyond the immediate losses Binance has pledged to cover.
