Binance pauses deposits and withdrawals after $6.3B breach

Binance suspended deposits and withdrawals on Thursday as it investigated a security incident with an estimated $6.3 billion impact, according to The Associated Press. The move restricts users from moving crypto into or out of the exchange while checks continue. Binance did not say it had halted trading.

The scale could make the incident the largest crypto hack on record. Reuters reported that hackers stole $6.3 billion, while Binance described the figure as the incident’s estimated impact. The exchange said it had found no evidence that wallet private keys were exposed.

How did the attacker get in?

Binance’s initial investigation points to a possible breach of an engineer’s laptop. The company said the attacker may have used it to access a service container and submit unauthorized withdrawal transactions. A service container is a software environment used to run an application or part of one.

Binance has not published a full account of the attack. It said it would share more technical details after the investigation and verification of the facts. The exchange also said it was working with law enforcement, blockchain intelligence firms and industry partners.

How much money has been frozen?

Binance said about $3 billion of affected assets had been frozen on-chain, meaning through actions recorded on blockchains. Reuters reported that the exchange had not described the status of the remaining estimated $3.3 billion. Binance co-founder Yi He said the company would cover all hacking losses.

Stablecoin issuers also froze funds linked to the incident. Reuters reported that Tether froze nearly $1.57 billion and Circle more than $800 million. Those figures are the companies’ reported freezes, and may overlap with Binance’s total.

When will withdrawals resume?

Reuters reported that Binance expected to resume withdrawal services within 48 hours. The exchange had not announced a precise restart time in the report. Binance said deposits were unaffected, though it had temporarily suspended them as a precaution, according to AP.

The distinction matters for users: Binance’s announcement described a pause on deposits and withdrawals, not a halt to trading across its platform. The exchange said user funds were safe, but the investigation was still underway and the full loss had not been independently confirmed.

Sources and documents

• The Associated Press — apnews.com