Crypto exchanges call for quick moves to bolster defenses after Binance heist
COIN•Crypto exchanges are strengthening defenses and calling for industry-wide information-sharing after a record $6.3 billion hack of Binance. Coinbase adjusted systems that store cryptocurrency keys offline, while Tether and Circle said they froze nearly $1.57 billion and $800 million, respectively, linked to the hack.
1. Exchanges strengthen defenses
Coinbase said it adjusted systems that store cryptocurrency keys offline “solely out of an abundance of caution,” while Kraken said it was monitoring industry incidents for lessons. Executives called for urgent security improvements as regulators promote deeper integration of digital assets into the financial system.
2. Hack and frozen funds
Binance halted withdrawals after Thursday’s attack and said it would use company funds to cover the losses. Co-CEO Richard Teng said the complex attack may have begun with a compromised software engineer’s laptop, and security experts said social engineering may have been involved. Tether said it had frozen nearly $1.57 billion linked to Binance, while Circle said it froze $800 million.
3. Calls for coordination
OKX CEO Star Xu called for a real-time alert system to share information, coordinate responses and temporarily freeze suspected stolen funds. Executives said they expected the hack not to cause material losses across the wider industry, and that Binance had resources to cover the losses.
