Binance halts deposits, withdrawals after suspected $6.3bn cyberattack

Binance, the world’s largest cryptocurrency exchange by trading volume, has suspended deposits and withdrawals following a suspected cyberattack estimated to have affected assets worth $6.3 billion.

The cryptocurrency trading platform disclosed the security breach in a statement on Friday, saying it had launched an investigation into the incident and was working with blockchain partners to freeze the affected assets.

According to Binance, preliminary findings suggest that the attack may have originated from a compromised laptop belonging to a DevOps engineer, which allegedly provided the attacker with access to a service container used to initiate unauthorised withdrawal transactions.

“Binance’s initial investigation suggests that the security 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,” the company stated.

The exchange, however, said it had found no evidence that any wallet private keys were compromised, adding that a detailed technical report would be published after the investigation is concluded.

Binance disclosed that the estimated financial impact of the incident stood at approximately $6.3 billion, with about $3 billion worth of the affected assets already frozen on the blockchain through collaboration with its partners.

The company also assured users that they would not bear the financial consequences of the incident, promising to cover all losses through its Secure Asset Fund for Users, SAFU, and corporate funds.

“User funds are safe. We will also publish an updated Proof of Reserves once the remediation is complete,” Binance said.

As part of its immediate response, the exchange temporarily halted deposits and withdrawals while security checks were being conducted.

It also revoked the authorisation of the affected address and contacted law enforcement agencies and blockchain intelligence firms to trace and recover the assets.

Binance said its security and technical teams were working round the clock to resolve the incident, while collaborating with law enforcement agencies to identify and prosecute those responsible.

The company added that further details would be released as investigations progress.