Binance Reports $6.3 Billion Security Breach, Freezes Crypto Assets

Binance estimates that a security breach affected $6.3 billion in cryptocurrency. The exchange says partners have frozen about $3 billion in assets and promises to cover all losses. The incident sent cryptocurrency prices lower and raised concerns about exchange security.

The world’s largest cryptocurrency exchange said on October 30 that an initial investigation pointed to a possible compromise of a laptop belonging to a DevOps engineer. The attacker may have used access to a service container to submit unauthorized withdrawal transactions.

Binance said investigators had found no evidence that wallet private keys had leaked. The company temporarily suspended deposits and withdrawals while its security teams checked its systems and traced the affected assets. It also revoked authorisation for the affected address and contacted law enforcement agencies.

Binance co-founder Yi He said the company would cover all hacking losses through its Secure Asset Fund for Users (SAFU) and corporate funds. The exchange said customer funds remained safe. It plans to publish a technical report after completing its investigation and update its proof of reserves after remediation.

Tether, Circle and Ripple Freeze Assets

Several cryptocurrency firms helped freeze assets linked to the incident. Tether froze nearly $1.57 billion, while Circle froze more than $800 million. Binance also reported that Ripple had frozen about $200 million.

The exchange said roughly $3 billion in affected assets had been frozen or located with help from industry partners. The status of the remaining estimated $3.3 billion was not yet clear.

Binance has more than 335 million registered users worldwide. Its 2025 annual report showed about $162.8 billion in assets under custody.

Bitcoin and Ether Prices Fall

The incident triggered a sell-off in cryptocurrency markets. Bitcoin fell to a six-week low, while Ether reached its lowest level in two months. Binance-linked BNB also declined.

Shares in Coinbase fell 4.8% in extended US trading. Strategy, a company known for its large Bitcoin holdings, lost nearly 6%.

Analysts warned that the incident could prompt investors to reconsider the risks of holding digital assets on centralised exchanges. They also raised concerns about counterparty, solvency and liquidity risks.

The breach adds to a series of major cryptocurrency thefts. Binance.US and Coinbase said their platforms were not affected by the incident.