Potential Binance 'hack' forces crypto firms to freeze $3 billion
A suspected hack at Binance prompted cryptocurrency firms to freeze about $3 billion in assets, the company said on Thursday. The exchange, which described the situation as a "security issue," has temporarily suspended deposits and withdrawals while it "conducts security checks, freezes funds, and works with law enforcement." It vowed to cover all losses. "It...
Dubai-based cryptocurrency exchange Binance disclosed on Friday that it fell victim to a significant security breach, with an estimated $6.3 billion worth of digital assets affected. As the world's largest crypto exchange, the incident has raised concerns about the security of digital assets. The company has frozen approximately $3 billion in affected assets as part of an ongoing investigation into the cause of the breach.
Binance has stated that it suspects an attacker gained unauthorized access to an engineer's laptop, which enabled them to submit unauthorized withdrawal transactions. The company found no evidence of leaked wallet private keys. Binance has assured its customers that assets remain safe, and the company will cover all losses using its Secure Asset Fund for Users (SAFU) and other reserves.
The freeze of assets was carried out in collaboration with blockchain companies such as Tether and Circle, who froze a combined $2.37 billion. Other companies like Ripple also assisted in restricting transfers of the affected assets. Binance has urged customers to refrain from using the platform until security checks are completed and normal operations resume.
The company's BNB token saw a 8% drop in value over a 24-hour period, reflecting the impact of the security breach on the crypto market.
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