Binance freezes $3 billion after $6.3 billion crypto hack

Binance, the largest cryptocurrency exchange globally, confirmed on Thursday, Oct. 29, that hackers compromised its systems with an estimated impact of $6.3 billion in digital assets. The company froze approximately $3 billion of the stolen funds and suspended customer withdrawals while it fortifies its security infrastructure.

The initial estimate of frozen assets stood at $2.54 billion, but the figure rose to $3 billion as stablecoin issuers reacted to the breach. Paolo Ardoino, CEO of Tether, stated that his firm froze roughly $1.6 billion in funds related to the incident. Jeremy Allaire, CEO of Circle, said the company froze more than $800 million in USDC. Binance noted that the total frozen amount could continue to increase as it works with blockchain intelligence firms.

Richard Teng, co-CEO of Binance, explained that the attack likely originated from the laptop of a DevOps engineer. That access allowed unauthorized withdrawals to be sent from a service container. Teng clarified that the intrusion was not a simple single-click error but a complex attack process. The company later acknowledged additional breach points but reported finding no evidence of private wallet key leaks.

The $6.3 billion loss surpasses the previous record set in 2025, when Bybit lost $1.5 billion. Binance holds an emergency fund called SAFU, valued at approximately $1.18 billion by CryptoQuant. If the company recovers the $3 billion in frozen assets, it would still need to cover the remaining $3.3 billion using SAFU and company resources, according to CCN.

Analysts at TRM Labs expressed high confidence that the attack was executed by TraderTraitor, a North Korean unit linked to the Lazarus Group. Binance stated that its investigation has not attributed responsibility to any specific party. The exchange emphasized that deposits are operating normally and that withdrawals will resume after a security overhaul.

Binance.US, which serves U.S. residents, reported that its platform was not affected by the hack. For users of Binance.com, the company advised checking balances and enabling two-factor authentication. Teng assured clients that their funds remain safe and that Binance will cover all losses. The company has not yet published a complete analysis of the incident.

The freeze on withdrawals limits the attackers' ability to convert stolen stablecoins into cash but does not guarantee the funds will return to Binance. The exchange continues to track the stolen assets with authorities and intelligence partners. Withdrawals remain suspended as of Oct. 30, while deposits continue to process without interruption.