Binance confirms $6.3 billion security breach

Binance has confirmed a security breach involving digital assets with an estimated total impact of $6.3 billion. The exchange stated that it is investigating the incident and has pledged to cover all resulting user losses. Binance paused withdrawals after suspicious outflows were detected across multiple blockchains. The company identified a compromised DevOps engineer's laptop as the cause of the breach. Cybersecurity researchers have linked the hack to North Korea's TraderTraitor group.

Approximately $5.57 billion left Binance-linked wallets across the Ethereum, Bitcoin, and Tron blockchains. Tether and Circle froze assets in the main receiving wallet to prevent further movement. Tether froze 975.1 million USDT, while Circle froze 823 million USDC. In total, these two stablecoin issuers froze $1.79 billion in USDT and USDC. Binance co-CEO Yi He stated that Ripple has frozen about $200 million in RLUSD. The exchange and its partners have frozen approximately $3 billion in assets onchain.

Binance stated in an emailed statement that user funds are completely safe. The company confirmed to TechCrunch that it is dealing with a security incident. Yi He pledged that the exchange will cover all user losses resulting from the hack. Binance is working to recover the stolen assets and is investigating the full scope of the breach. The exchange has pointed to the compromised laptop as the initial vector for the attack.

The security incident caused immediate volatility in cryptocurrency markets. Bitcoin fell below $79,000 following reports of the hack. BNB lost 7.1% in the same period as Yi He made the pledge to cover losses. The drop in BNB occurred as reports of the hack rippled through markets. Bitcoin dropped below $79,000 on Thursday as the news spread.

The total impact is estimated at around $6.3 billion. About $3 billion has been frozen onchain by the exchange and its partners. Tether and Circle acted to freeze the stablecoins in the receiving wallet. Ripple also froze a portion of the RLUSD assets involved in the transfer.

Binance continues its investigation into the security incident. The company has stated that it is dealing with the breach and is focused on user safety. The exchange has paused withdrawals to secure the remaining funds. The link to the TraderTraitor group has been established by intelligence firms.