Binance co-CEO Richard Teng announced that the exchange will cover all customer losses following a security incident affecting $6.3 billion in assets. The company has suspended withdrawals, overhauled its withdrawal service security, and is working with law enforcement and blockchain firms to trace and recover stolen funds.
Teng clarified that the breach involved more than a single point of failure. While initial investigations suggested an attacker may have gained access through a compromised laptop belonging to a DevOps engineer, subsequent investigation uncovered additional attack vectors. "The attacker did not simply use one engineer's permissions, and this was not a single 'one-click' action," Teng said in a post on X. "It involved a more complex attack process."
Response and Recovery Efforts
Binance has revoked authorizations on affected addresses and invited law enforcement agencies and blockchain intelligence firms to assist in asset recovery. The exchange confirmed that approximately $3 billion of the $6.3 billion stolen has been frozen on-chain. Teng stated that Binance found no evidence of private key compromise and that the company will reimburse losses through its SAFU fund and additional company resources.
Market Impact
The incident created volatility in cryptocurrency markets. Bitcoin briefly declined to $76,300, resulting in nearly $479 million in liquidated positions, while Ethereum recorded $363 million in liquidations.
Public Response
Reactions on social media were mixed. Some users praised Binance's transparency and leadership response, while others expressed skepticism about the exchange's security practices. Criticism included questions about the incident and its handling by company leadership.
