Binance Responds to $6.3B Hack

Binance Co-CEO Richard Teng has assured customers that the cryptocurrency exchange will cover all losses stemming from a recent security incident, which is estimated to have cost $6.3 billion.

Binance has also acknowledged that a compromised laptop, initially identified as the sole cause of the breach, was not the only vulnerability exploited, as investigators have uncovered additional points of attack.

In a post on X, Teng stated that initial investigations suggested an attacker may have gained access through a DevOps engineer’s compromised laptop. This access reportedly allowed them to infiltrate a service container and initiate unauthorized withdrawals. However, Teng cautioned against simplifying the incident to a single employee’s permissions or a simple “one-click” action.

“To be clear: the attacker did not simply use one engineer’s permissions, and this was not a single ‘one-click’ action,” Teng explained. “It involved a more complex attack process. Our investigation has not attributed responsibility to any individual.”

Addressing the exchange’s response to the hack, the co-CEO highlighted that Binance temporarily halted withdrawals and conducted a comprehensive security overhaul of its entire withdrawal service and associated addresses. The company also revoked authorizations for affected addresses and has engaged law enforcement agencies and on-chain intelligence firms to assist in tracing and recovering the stolen funds.

A subsequent update from Binance further clarified the situation, with the exchange reporting that ongoing investigations had uncovered “additional points of breach,” though specific details were not disclosed.

Teng added that the company had found no evidence of a private key leak. He also confirmed that approximately $3 billion of the $6.3 billion stolen has been frozen on-chain with the assistance of “blockchain partners.” He reiterated that customer funds remain secure and that Binance will cover all losses through its SAFU fund, supplemented by additional company resources.

The response from X users was mixed. Many reacted positively to Teng’s explanation, commending the crypto firm for its “strong” leadership and transparency, while others expressed relief that their funds were safe.

However, some users remained critical. Chill Pill, an NFT account with nearly 100,000 followers, stated it “wouldn’t trust Binance” at this juncture. Meanwhile, crypto watchdog MASTR labeled the exchange as incompetent and suggested that selling assets to reimburse users could destabilize the broader market.

Others, including former X head of product Nikita Bier, directed criticism at Binance co-founder Changpeng Zhao, questioning his “funds are SAFU” response to what is being described as the largest crypto hack in history.

The market experienced significant volatility following the news, with Bitcoin briefly dropping to $76,300 and liquidating nearly $479 million in positions. Ethereum also saw substantial liquidations, totaling another $363 million.