Record hack on Binance raises questions over security, shakes investor confidence
But crypto can still be a viable investment for those who understand the risks and manage them well.
A massive hack at Binance, the world's largest cryptocurrency exchange, has stolen about US$6.4 billion worth of digital assets within 30 minutes on October 29, 2025, reigniting concerns about the safety of storing cryptocurrencies on exchanges. North Korean-linked attackers targeted the platform's internet-connected "hot wallets," quickly draining the funds and converting them into other cryptocurrencies like Ether.
Binance managed to freeze around US$3 billion of the stolen funds but has yet to recover the rest, maintaining its remaining assets above required risk-management levels. Since reopening on November 2, customers have withdrawn a net US$4.72 billion, or 3% of the assets on the platform. Experts agree that while Binance's swift actions helped minimize damage, the scale of the attack underscores the ongoing risks of centralised exchanges, where attackers can move billions across blockchains and borders before authorities intervene.
Binance's success in freezing funds demonstrates the importance of transparency and cooperation in limiting the impact of such attacks, but it also highlights the weaknesses inherent in centralised systems. Experts recommend that cryptocurrency platforms adopt multiple layers of security, including cold storage, to protect against increasingly sophisticated attacks, including those potentially orchestrated by state-backed hackers.
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.
