Binance pauses withdrawals after $6.3 billion security breach
Binance says a security breach may have affected about $6.3 billion in assets, prompting it to pause withdrawals while it works to recover funds for users.
Onchain Report Newsroom#123c632 min read
Binance has paused deposits and withdrawals after a security breach that blockchain analysts say moved about $6.36 billion from the exchange, making it the largest recorded crypto theft. The Associated Press reports that analysts traced the funds across 10 blockchains. Binance says it will cover users’ losses.
The exchange’s latest update says deposits are operating normally, but withdrawals remain paused while it checks and secures its systems. Binance says it has started recovering assets for users.
How did the attacker get access?
Binance’s initial investigation points to a compromised laptop belonging to a DevOps engineer, a worker who helps run and maintain software systems. The attacker may have used access from the laptop to enter a service container and submit unauthorized withdrawal transactions, the company said in its security incident update.
Binance later said it found additional “points of breach” as it traced the attack. It has not published a full technical account. The company says it found no evidence that wallet private keys were leaked. Private keys are the secret codes used to authorize crypto transfers.
How much has Binance recovered or frozen?
Binance said the estimated impact was around $6.3 billion and that it had worked with blockchain partners to freeze about $3 billion of affected assets. The figures describe assets traced and frozen so far; the exchange has not said that all of the estimated amount was recovered.
Blockchain analysis firm TRM said an attacker moved about $6.36 billion out of Binance wallets, mostly in roughly 20 minutes. TRM and Chainalysis have linked the attack to TraderTraitor, a North Korean hacking group, but Binance says it is still working with law enforcement to confirm who was responsible.
When will withdrawals resume?
Binance said withdrawals were expected to resume in a day or two, according to the AP’s Friday report. The company has not given a firm time. It says it will cover all losses using its SAFU fund, a reserve for protecting users, and company funds.
For now, customers can deposit as usual, but they cannot withdraw crypto from Binance. The exchange says it will share a detailed technical report after its investigation is complete and the facts are verified.
Sources
- reports that analysts traced the funds across 10 blockchains — apnews.com
- security incident update — binance.com