Crypto exchange Binance halts withdrawals after S$8 billion hack

On October 30, the world's largest cryptocurrency exchange Binance experienced a massive hack resulting in an estimated loss of US$6.3 billion, or S$8.05 billion. Binance founder and CEO Zhao Changpeng, also known as CZ, confirmed the hack on social media, stating that user funds are safe. The hack sent shockwaves through the cryptocurrency markets, causing significant price drops for major cryptocurrencies like Bitcoin, Ethereum, and Binance's native token BNB.

US$1.45 billion of Bitcoin, US$875 million of Ethereum, and over US$2 billion of stablecoins were reportedly affected. Stablecoins, which are pegged to the US dollar, are insured by companies like Tether and Circle, who froze the affected stablecoins. However, other cryptocurrencies lack central authorities, leaving them vulnerable to further transactions by the hacker.

Binance's security team believes the hack originated from a compromised DevOps engineer's laptop, which allowed unauthorized withdrawal transactions. The company has frozen affected assets, with around $3 billion of funds frozen on-chain. Binance will cover all losses using its SAFU fund and company resources. The exchange has temporarily suspended deposits and withdrawals, revoked affected address authorizations, and engaged law enforcement and blockchain intelligence partners to trace and recover the stolen funds.