Crypto exchange Binance freezes assets after $6.3 billion security breach

Crypto exchange Binance has frozen assets following a security breach resulting in an estimated $6.3 billion in losses, potentially the largest crypto heist ever. Binance worked with partners to freeze $3 billion of the affected assets, but the status of the remaining $3.3 billion remains unknown. Co-founder Yi He stated the company would cover all hacking losses.

Initial investigation suggests the breach may have started with a hacked laptop belonging to an engineer, leading to unauthorized withdrawals. Bitcoin and Ether fell sharply, while BNB experienced a 5% drop. The breach could dampen crypto's risk appetite and prompt investors to reassess the safety of assets held on centralised exchanges.

Binance, which has 335 million registered users and $162.8 billion in assets under custody, assured users that their funds remain safe. The exchange has launched a secure asset fund for user protection, and some crypto companies froze funds linked to the incident. This breach adds to a string of crypto thefts, with billions of dollars stolen in previous attacks.

Authorities warn that organized crime groups increasingly use cryptocurrencies to move funds across borders.