Key Takeaways
- • Binance is investigating a potential $6.3bn security breach that analysts say could be the largest crypto incident on record, though the exchange has not explicitly confirmed funds were stolen.
- • Binance has frozen about $3bn of the affected assets so far, with no update on the remaining $3.3bn, and co-founder Yi He said the company would cover "all hacking losses."
- • An initial investigation points to a compromised engineer laptop that allowed an attacker to reach a Binance system and make unauthorised withdrawals.
- • Tether froze nearly $1.57bn and Circle froze more than $800m in assets linked to the incident.
- • Bitcoin fell more than 3% to a six-week low of $76,368, while Coinbase and Strategy shares declined.
Summary
Binance, the world's largest cryptocurrency exchange, said it was investigating reports of a potential $6.3bn security breach, according to The Guardian, citing Reuters and the Associated Press. Analysts quoted in coverage said the incident could be the most significant digital-asset hack on record. Binance has not explicitly confirmed that funds were stolen, and the extent of possible losses was not immediately clear. The company said its teams were "working around the clock" and that user funds were "completely safe."
Binance said it had worked with partners to freeze the affected assets, with about $3bn located so far. It provided no update on the remaining $3.3bn. Co-founder Yi He said the company would cover "all hacking losses." An initial investigation suggested the breach began with a hacked laptop belonging to one of Binance's engineers, which allowed an attacker to access one of its systems and make unauthorised withdrawals. All deposits and withdrawals have been temporarily suspended while security checks are conducted, with support from law enforcement and industry partners.
Stablecoin issuers have also acted. Tether said it froze nearly $1.57bn in assets linked to the incident and Circle froze more than $800m. World Liberty Financial, a crypto company linked to the Trump family, said it worked with custodian BitGo to freeze funds, and Binance said about $27m in stablecoins and roughly $2m in World Liberty tokens had been frozen. Binance, which has 335 million registered users and about $162.8bn in assets under custody as of its 2025 annual report, also runs a secure asset fund held in bitcoin intended to cover breaches.
Market reaction was immediate. Bitcoin fell more than 3% to $76,368 in early Asian trading, a six-week low, and Coinbase shares slid 4.8% while Strategy shares fell nearly 6% in extended US trading. Analysts at HashKey Group said the breach could further dampen risk appetite and prompt investors to reassess counterparty, solvency and liquidity risks at centralised exchanges. Coverage noted the incident comes as crypto was already under pressure from higher US interest rates and weaker ETF demand, and it follows a year in which attackers stole $2.9bn across nearly 150 attacks, according to TRM Labs.
Binance said it had worked with partners to freeze the affected assets, with about $3bn located so far. It provided no update on the remaining $3.3bn. Co-founder Yi He said the company would cover "all hacking losses." An initial investigation suggested the breach began with a hacked laptop belonging to one of Binance's engineers, which allowed an attacker to access one of its systems and make unauthorised withdrawals. All deposits and withdrawals have been temporarily suspended while security checks are conducted, with support from law enforcement and industry partners.
Stablecoin issuers have also acted. Tether said it froze nearly $1.57bn in assets linked to the incident and Circle froze more than $800m. World Liberty Financial, a crypto company linked to the Trump family, said it worked with custodian BitGo to freeze funds, and Binance said about $27m in stablecoins and roughly $2m in World Liberty tokens had been frozen. Binance, which has 335 million registered users and about $162.8bn in assets under custody as of its 2025 annual report, also runs a secure asset fund held in bitcoin intended to cover breaches.
Market reaction was immediate. Bitcoin fell more than 3% to $76,368 in early Asian trading, a six-week low, and Coinbase shares slid 4.8% while Strategy shares fell nearly 6% in extended US trading. Analysts at HashKey Group said the breach could further dampen risk appetite and prompt investors to reassess counterparty, solvency and liquidity risks at centralised exchanges. Coverage noted the incident comes as crypto was already under pressure from higher US interest rates and weaker ETF demand, and it follows a year in which attackers stole $2.9bn across nearly 150 attacks, according to TRM Labs.
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