'Binance' Suspends Deposits and Withdrawals Following Potential Security Breach Estimated at $6.3 Billion
Binance announces suspension of operations and freezing of $3 billion following a potential breach
Translated by Qiyas from السياسة — Original source
- Platform announces freeze of assets worth approximately $3 billion and pledges to cover all losses
Binance, the world’s largest cryptocurrency exchange, announced a temporary suspension of all deposits and withdrawals following a security incident estimated to have caused total losses of around $6.3 billion, confirming that it has so far frozen assets linked to the incident valued at approximately $3 billion.
In an official statement released on Friday, the platform explained that its preliminary investigations suggest that a laptop belonging to one of its development and operations engineers may have been compromised, allowing the attacker to access one of the service containers and execute unauthorized withdrawal transactions.
Binance emphasized that no evidence has been found so far indicating a leak of private keys for digital wallets, reiterating that user funds are safe and that it will bear all losses resulting from the incident through its Secure Asset Fund for Users (SAFU) and the company’s own resources.
The platform noted that, in collaboration with its partners in the cryptocurrency sector, it has managed to freeze assets affected by the incident, valued at around $3 billion, across blockchain networks, while efforts continue to trace and recover the funds.
It added that it has taken immediate precautionary measures, including suspending deposits and withdrawals until security checks are completed, revoking authorization linked to the affected address, and cooperating with law enforcement agencies and blockchain data analytics firms.
Binance confirmed that its specialized teams are working around the clock to address the fallout from the incident, noting that it will publish a detailed technical report on the circumstances once investigations are concluded and facts are verified, alongside issuing an updated proof-of-reserves document immediately after processing procedures are completed.
Reuters had previously reported that the value of frozen assets stood at $2.54 billion at an earlier stage of the investigation, mentioning the involvement of Tether and Circle in freezing assets linked to the incident.
The agency stated that Tether froze assets worth approximately $1.57 billion, while Circle froze assets exceeding $800 million, as part of efforts to mitigate the incident’s repercussions.
Meanwhile, Bloomberg reported that news of the potential breach triggered a wave of sell-offs in cryptocurrency markets, amid investor concerns over the scale of the incident and its implications for the security of digital assets.
Binance remains the world’s largest cryptocurrency exchange by trading volume. The company has not yet disclosed the final value of losses resulting from the incident, reaffirming that investigations are ongoing to determine all details surrounding the event.
