Binance reports record $6.3 billion theft following security breach
Binance has suspended withdrawals and deposits after a security incident resulted in the loss of $6.3 billion in assets, triggering a decline in global cryptocurrency markets.
Binance, the world’s largest cryptocurrency exchange, reported a major security breach on Friday resulting in the theft of $6.3 billion. The company stated that the breach originated from a compromised engineer’s laptop, which permitted an unauthorized actor to access a service container and execute illicit withdrawals.
Blockchain intelligence firm TRM Labs has linked the breach to the North Korean hacking entity known as TraderTraitor, labeling it the largest cryptocurrency theft in history. The incident surpasses the previous record of $1.5 billion held by the Bybit breach last year. In response, Binance has halted all deposit and withdrawal activity while coordinating with law enforcement.
The broader digital asset market reacted negatively to the news. Bitcoin’s value fell nearly 4% to $77,594, while shares of crypto-linked companies, including Robinhood Markets and MicroStrategy, declined by over 6% in premarket trading.
Binance has pledged to cover user losses using its Secure Asset Fund for Users (SAFU), which currently holds approximately $1 billion in Bitcoin. Industry experts have expressed skepticism regarding the feasibility of full reimbursement given the size of the loss relative to the fund's current valuation.