Binance halts withdrawals amid $5.3 bln crypto hack

On Thursday, Binance, the world's largest cryptocurrency exchange, announced it had suspended withdrawals following a series of reports that user funds were being drained from the platform. According to data aggregator Glassnode, hackers siphoned off approximately $5.3 billion worth of assets. The exchange has not independently verified the reported loss figure. Binance officials explained that their team was actively investigating the security breach and that withdrawals would resume once the issue was resolved.

A Binance spokesperson assured investors that user funds remained secure. Glassnode data revealed that $1.66 billion in stablecoin USDT, 17,985 Bitcoin worth around $1.45 billion, and $767 million in stablecoin USDC were compromised in the attack. Ether and various other smaller altcoins were also affected.

If verified, this incident would be the most significant crypto hack on record. USDC operator Circle reported that over 800 million USDC were frozen in response to the hack, while Tether froze over 1.567 billion USDT. Changpeng Zhao, Binance's co-founder and former CEO, confirmed on social media that the event appeared to be a hack of the platform.

Following the news of the hack, Bitcoin and broader crypto assets experienced a decline, extending losses from the previous week. Bitcoin's price dropped 3.2% to $78,712.0, while Ether fell 3.9% to $2,267.55. Binance's native token BNB also saw a 7% decrease, trading at $706.51. Glassnode data noted that Binance's BNB balance remained unaffected.