Crypto exchange Binance freezes assets after US$6.3 billion security breach
Beyond the potential loss of assets, the security breach was likely to have wider ramifications for crypto, which had already been under pressure lately due to higher US interest rates and softer demand from exchange-traded fund buyers, analysts said.
Binance disclosed that approximately US$6.3 billion of funds were affected in what industry experts deem as the most substantial crypto hack ever. The world's largest crypto exchange revealed on X that they had collaborated with blockchain partners to freeze affected assets, with around US$3 billion frozen on-chain thus far. All deposits and withdrawals have been temporarily suspended. Binance affirmed that they will cover all losses, stating "user funds are safe."
Blockchain intelligence firm TRM Labs attributed the attack to North Korea's elite hacking unit, TraderTraitor, based on robust on and off-chain intelligence. TRM Labs confidently made this assessment. The largest publicly known crypto hack took place at exchange Bybit in February 2025, where attackers stole almost US$1.5 billion of tokens.
In the wake of this Binance incident, crypto faithful who had been experiencing a two-month-long price rebound are potentially facing a setback. Binance, a pivotal player in the crypto industry, suffered a significant blow to confidence in the industry, particularly as users have been increasingly wary of AI's growing cyber capabilities.
Various stablecoin issuers responded by freezing missing currency. Tether CEO Paolo Ardoino stated that they froze over US$1.5 billion of the stablecoin "related to a potential Binance exchange hack." Jeremy Allaire, CEO of Circle Internet Group, reported that US$800 million of its coin had been frozen due to "reports of a potential exploit involving Binance."
The crypto market had already been experiencing increased volatility, with US$11 billion in options set to expire on Oct 30. This occurred in the weeks leading up to the US midterm elections, which could potentially lead to increased regulatory scrutiny for the industry. Recent security incidents have affected both crypto firms and traditional financial institutions, highlighting the ongoing threat of cyber attacks in the digital landscape.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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