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.
- • Binance has frozen the affected assets with partners, with about $3 billion located so far; no update was given on the remaining $3.3 billion.
- • An initial investigation pointed to a hacked laptop belonging to a Binance engineer, which allowed an attacker to access a system and make unauthorised withdrawals.
- • Tether froze nearly $1.57 billion and Circle froze more than $800 million in assets linked to the incident; Ripple froze roughly $200 million.
- • Bitcoin fell more than 3% to a six-week low of $76,368 and ether fell more than 3% to a two-month low of $2,178 in early Asian trading.
Summary
Binance, the world's largest cryptocurrency exchange, said a security breach had resulted in an estimated $6.3 billion impact, a figure analysts said could make it the biggest crypto heist ever. Binance said it had worked with partners to freeze the affected assets, with about $3 billion located so far. The company gave no update on the remaining $3.3 billion. Co-founder Yi He said Binance would cover "all hacking losses."
An initial investigation suggested the breach began with a hacked laptop belonging to one of Binance's engineers. The attacker used that access to reach one of the company's systems and make unauthorised withdrawals. Binance said in a statement that "user funds remain safe" and that all deposits and withdrawals were temporarily suspended while its security teams conduct checks, secure wallet infrastructure and trace affected assets, with support from 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 fell more than 3% to $76,368, a six-week low, and ether dropped more than 3% to $2,178, a two-month low. BNB, the exchange's token, was down 5% over 24 hours at $709.70, according to CoinGecko. Shares of Coinbase Global slid 4.8% and those of bitcoin buyer Strategy fell nearly 6% in extended US trading. Analysts said the breach could further dampen risk appetite and prompt investors to reassess the safety of assets held on centralised exchanges, including counterparty, solvency and liquidity risks. Tim Sun, senior researcher at HashKey Group, made that point, and the market was already under pressure from higher US interest rates and softer exchange-traded fund demand.
Stablecoin issuers Tether and Circle froze assets linked to the incident, with Tether reporting nearly $1.57 billion and Circle more than $800 million. Crypto firm Ripple froze roughly $200 million, according to Yi. World Liberty Financial, a crypto company linked to US President Donald Trump and his family, said it had worked with custodian BitGo to freeze stolen funds, including $27 million in stablecoins and about $2 million in World Liberty tokens. Arkham CEO Miguel Morel said data indicated billions of dollars had been taken by an unknown actor.
The incident follows a string of crypto thefts. Attackers stole $2.9 billion across nearly 150 attacks last year, according to TRM Labs, and Bitget reported roughly $350 million stolen in September. Binance.US and Coinbase both said they were unaffected. In an unrelated incident the same day, prediction market Polymarket temporarily halted trading after a security incident at a third-party provider and said it would fully reimburse affected traders.
An initial investigation suggested the breach began with a hacked laptop belonging to one of Binance's engineers. The attacker used that access to reach one of the company's systems and make unauthorised withdrawals. Binance said in a statement that "user funds remain safe" and that all deposits and withdrawals were temporarily suspended while its security teams conduct checks, secure wallet infrastructure and trace affected assets, with support from 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 fell more than 3% to $76,368, a six-week low, and ether dropped more than 3% to $2,178, a two-month low. BNB, the exchange's token, was down 5% over 24 hours at $709.70, according to CoinGecko. Shares of Coinbase Global slid 4.8% and those of bitcoin buyer Strategy fell nearly 6% in extended US trading. Analysts said the breach could further dampen risk appetite and prompt investors to reassess the safety of assets held on centralised exchanges, including counterparty, solvency and liquidity risks. Tim Sun, senior researcher at HashKey Group, made that point, and the market was already under pressure from higher US interest rates and softer exchange-traded fund demand.
Stablecoin issuers Tether and Circle froze assets linked to the incident, with Tether reporting nearly $1.57 billion and Circle more than $800 million. Crypto firm Ripple froze roughly $200 million, according to Yi. World Liberty Financial, a crypto company linked to US President Donald Trump and his family, said it had worked with custodian BitGo to freeze stolen funds, including $27 million in stablecoins and about $2 million in World Liberty tokens. Arkham CEO Miguel Morel said data indicated billions of dollars had been taken by an unknown actor.
The incident follows a string of crypto thefts. Attackers stole $2.9 billion across nearly 150 attacks last year, according to TRM Labs, and Bitget reported roughly $350 million stolen in September. Binance.US and Coinbase both said they were unaffected. In an unrelated incident the same day, prediction market Polymarket temporarily halted trading after a security incident at a third-party provider and said it would fully reimburse affected traders.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.