Binance suspends withdrawals after $6.3 billion security incident
Key points
- Binance has temporarily suspended deposits and withdrawals after estimating a security incident's impact at approximately $6.3 billion.
- The exchange has frozen around $3 billion in affected assets with blockchain partners.
- Binance says it will cover all losses using its Secure Asset Fund for Users and company funds.
Binance has suspended deposits and withdrawals after estimating the impact of a security incident at approximately $6.3 billion.
The exchange's initial investigation points to a compromised DevOps engineer's laptop, which may have enabled unauthorised withdrawals.
“Binance will cover all losses from the SAFU fund and the company’s funds,” the exchange said in its official announcement.
Binance has worked with blockchain partners to freeze approximately $3 billion in affected assets.
The exchange found no evidence that attackers accessed wallet private keys, according to its preliminary investigation.
Binance also revoked authorisation for affected addresses and engaged law enforcement and blockchain intelligence partners.
The exchange plans to publish a technical post-mortem and update its proof of reserves after completing remediation.
Following the update, BNB was trading down 4.8% at $716.36.
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