Key Takeaways
- • Binance reported a security breach with an estimated $6.3 billion impact, which analysts said could be the largest crypto heist on record, according to Reuters.
- • About $3 billion of the affected assets had been frozen as of the report, with no update given on the remaining $3.3 billion; co-founder Yi He said Binance would cover "all hacking losses."
- • The breach reportedly began with a hacked laptop belonging to a Binance engineer, which let an attacker make unauthorized withdrawals from one of its systems.
- • Bitcoin fell more than 3% to $76,368 and ether dropped more than 3% to $2,178; Coinbase shares slid 4.8% and Strategy fell nearly 6% in extended US trading.
- • Tether froze nearly $1.57 billion and Circle more than $800 million in assets linked to the incident, while Ripple froze roughly $200 million.
Summary
Binance, the world's largest cryptocurrency exchange, said a security breach had resulted in an estimated $6.3 billion impact, a figure that analysts said could make it the biggest crypto heist ever and could lead investors to reassess the risks of holding digital assets, according to Reuters. Binance said it had worked with partners to freeze the affected assets, with about $3 billion located so far. It provided no update on the remaining $3.3 billion. Co-founder Yi He said the company would cover "all hacking losses."
An initial investigation suggested the breach started with a hacked laptop belonging to one of Binance's engineers, which allowed an attacker to access one of its systems and make unauthorized withdrawals. Binance said in a statement that "user funds remain safe" and that all deposits and withdrawals were temporarily suspended while its security teams conducted checks and traced affected assets with law enforcement and industry partners. Binance runs a secure asset fund, a reserve held entirely in bitcoin, intended to protect user assets in security breaches, according to its website. The exchange has 335 million registered users and had about $162.8 billion in assets under custody as of its 2025 annual report.
Markets reacted quickly in early Asian trading on Friday. Bitcoin dropped more than 3% to a six-week low of $76,368, ether fell more than 3% to a two-month low of $2,178, and BNB was down 5% over 24 hours at $709.70, according to CoinGecko. Coinbase shares slid 4.8% and Strategy fell nearly 6% in extended US trading. Analysts at GSR and HashKey Group said the breach could further dampen risk appetite and prompt investors to reassess counterparty, solvency and liquidity risks at centralized exchanges. The market had already been under pressure from higher US interest rates and softer demand from exchange-traded fund buyers.
Several firms moved to freeze funds. Tether said it had frozen nearly $1.57 billion linked to the incident, and Circle froze more than $800 million. Ripple said it had frozen roughly $200 million, and World Liberty Financial, which is linked to US President Donald Trump's family, said it had worked with BitGo to freeze stolen funds. Binance.US and Coinbase said they were not affected. The incident adds to a string of crypto thefts; TRM Labs reported $2.9 billion stolen across nearly 150 attacks last year, and Bitget reported roughly $350 million stolen in September.
An initial investigation suggested the breach started with a hacked laptop belonging to one of Binance's engineers, which allowed an attacker to access one of its systems and make unauthorized withdrawals. Binance said in a statement that "user funds remain safe" and that all deposits and withdrawals were temporarily suspended while its security teams conducted checks and traced affected assets with law enforcement and industry partners. Binance runs a secure asset fund, a reserve held entirely in bitcoin, intended to protect user assets in security breaches, according to its website. The exchange has 335 million registered users and had about $162.8 billion in assets under custody as of its 2025 annual report.
Markets reacted quickly in early Asian trading on Friday. Bitcoin dropped more than 3% to a six-week low of $76,368, ether fell more than 3% to a two-month low of $2,178, and BNB was down 5% over 24 hours at $709.70, according to CoinGecko. Coinbase shares slid 4.8% and Strategy fell nearly 6% in extended US trading. Analysts at GSR and HashKey Group said the breach could further dampen risk appetite and prompt investors to reassess counterparty, solvency and liquidity risks at centralized exchanges. The market had already been under pressure from higher US interest rates and softer demand from exchange-traded fund buyers.
Several firms moved to freeze funds. Tether said it had frozen nearly $1.57 billion linked to the incident, and Circle froze more than $800 million. Ripple said it had frozen roughly $200 million, and World Liberty Financial, which is linked to US President Donald Trump's family, said it had worked with BitGo to freeze stolen funds. Binance.US and Coinbase said they were not affected. The incident adds to a string of crypto thefts; TRM Labs reported $2.9 billion stolen across nearly 150 attacks last year, and Bitget reported roughly $350 million stolen in September.
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