Binance USD 6.3 bn breach: Exchange pledges compensation, plans fresh reserves report
Binance says its initial investigation has found no evidence of leaked wallet private keys, though the exact attack method remains under investigation.
Cryptocurrency exchange Binance has suffered a massive USD 6.3 billion security breach after hackers compromised the platform's hot wallets and executed unauthorised withdrawals.
Following the attack, Binance temporarily suspended withdrawals while its security team investigated the breach and upgraded its systems. However, official updates confirm that user deposits remain fully operational across the platform.
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According to Binance's official announcement, its initial investigation has uncovered multiple points of intrusion. The exchange noted that while the exact attack method is still under active investigation, there is "currently no evidence that wallet private keys were leaked."
Full loss coverage
To reassure affected users, Binance has pledged to cover all financial losses using its Secure Asset Fund for Users (SAFU) alongside corporate funds. The company confirmed it has "already set aside more than 6.34 billion dollars" to fully cover the stolen assets.
Industry collaboration has also helped mitigate the security breach's immediate impact. Binance revealed that approximately USD 3 billion worth of affected crypto assets have already been frozen with assistance from blockchain companies and industry partners.
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While full forensic investigations is underway, the exchange continues auditing its internal security infrastructure to prevent further unauthorised access and safeguard user accounts.
Service resumption
Binance resumed its services on November 1 in "a phased reopening of withdrawals depending on security checks."
Binance also announced plans to publish an updated Proof of Reserves report by November 2 to provide users with greater transparency, as the incident raises broader security questions regarding whether the exchange can maintain user trust following the breach.
