Binance, the world’s largest cryptocurrency exchange, has reported a security breach that could result in losses of approximately $6.3 billion, making it potentially the largest crypto heist in history. Analysts suggest this incident might cause investors to reconsider the risks associated with digital assets.
The exchange stated that it has managed to freeze around $3 billion of the affected funds so far. Co-founder Yi He assured users that Binance would cover all losses from the hacking incident but did not provide updates on the remaining $3.3 billion.
Preliminary investigations indicated the breach may have originated from a hacked laptop belonging to one of Binance’s engineers, granting the attacker access to the system and enabling unauthorised withdrawals.
Following the news, Bitcoin fell over 3%, hitting a six-week low of $76,368, while ether also dipped more than 3%, reaching a two-month low of $2,178. Shares in rival crypto exchange Coinbase fell by 4.8%, and Strategy’s stock experienced a nearly 6% drop in after-hours trading.
Experts from analytics firm Chainalysis described the breach as the largest hack in history, highlighting that it could further diminish investors’ appetite for risk. Tim Sun, a senior researcher at HashKey Group, noted this incident might prompt a reassessment of asset safety on centralised exchanges.
Binance, which boasts 335 million registered users and reported assets of approximately $162.8 billion in its custody, reassured its customers, stating that user funds remain safe. The exchange has temporarily suspended all deposits and withdrawals to secure wallet infrastructure and trace affected assets, collaborating closely with law enforcement.
On the wider cryptocurrency landscape, theft remains a significant concern. Last year, hackers stole $2.9 billion in cryptocurrency across nearly 150 attacks. Authorities have raised alarms about organised crime using cryptocurrencies to facilitate cross-border transactions outside traditional systems.
While Binance.US confirmed it was unaffected by the breach, Coinbase reported it was monitoring the situation closely. In a separate incident, prediction market operator Polymarket paused trading briefly after a security issue with a third-party provider but has since resumed operations and committed to reimbursing affected traders.
