Binance seeks to shore up confidence after record $6.3 billion heist
COIN•Binance said it would cover all losses from a record $6.3 billion hack using company funds, and was targeting a resumption of withdrawals within about 34 hours. The exchange said about $3 billion of affected assets had been located or frozen, while bitcoin and ether prices fell before stabilizing.
1. Binance promises reimbursement
Binance said customer funds were safe and it had set aside about $6.34 billion of company funds to cover the losses. The exchange said it was working with industry partners to freeze affected assets, with about $3 billion located so far, and was targeting a resumption of withdrawal services within approximately 34 hours.
2. Details of the breach
Co-CEO Richard Teng described a complex attack involving a compromised laptop and malicious software. Hackers manipulated a transaction-approval system to move funds from a Binance-controlled internet-connected wallet without normal approval controls. Binance said it was conducting a full security review and planned an initial proof-of-reserves snapshot, with results expected by Monday.
3. Market and investigation
Bitcoin fell to a six-week low of $76,368 and ether to a two-month low of $2,178 before stabilizing; Binance's BNB token was down about 6.4% over 24 hours. Analysts said the attack bore similarities to previous major thefts attributed to North Korea. Tether said it froze nearly $1.57 billion in related assets, while Circle froze more than $800 million; the FBI and Secret Service said they were engaged with partners on the incident.
