Binance Hit by Suspected Record $6.3 Billion Crypto Hack
The world's largest cryptocurrency exchange is working with authorities to investigate the incident, which may have originated from a compromised engineer's laptop.
Binance, the world's largest cryptocurrency exchange by trading volume, has experienced a significant security breach, with initial estimates suggesting losses of up to $6.3 billion (£4.7 billion). This incident is being considered the largest crypto hack on record. Richard Teng, Binance's co-chief executive, stated that the company is cooperating with authorities to understand the event and has pledged to cover all losses.
Binance, founded in China in 2017, allows users to buy, sell, and trade digital currencies. It has hundreds of millions of registered users globally. The exchange has faced regulatory scrutiny in recent years, including a lawsuit in the US that accused it of facilitating illicit financial transactions and the resignation of its former CEO in 2023 due to money laundering violations.
The hack affected Binance's global centralized exchange, Binance.com, but Binance.us, the service for U.S. residents, reported no impact. Teng explained that the breach likely began with a compromised DevOps engineer's laptop, granting an attacker access to a service container and enabling unauthorized withdrawal transactions. He described the attack as a complex process rather than a simple action. Cybersecurity experts suggest that if an engineer's credentials or device are compromised, it could provide a direct route into production systems and user wallets, even with robust security measures in place.
It is currently unknown who is responsible for the attack. However, some analytics firms have noted similarities between this incident and earlier hacks linked to North Korea, specifically referencing a $1.5 billion hack on the ByBit exchange in 2025. These past attacks have been attributed to the Lazarus Group, a cluster of cybercriminals allegedly connected to the North Korean regime. North Korea has consistently denied involvement in such activities.
Teng assured Binance users that their funds are secure and that all deposits and withdrawals were temporarily suspended as a precautionary measure. Binance intends to cover all losses from its emergency reserve fund and supplement any remaining amount with company capital. The exchange reported that approximately $3 billion in affected assets have been located and is working with partners to freeze them. Withdrawal services are expected to resume within 45 hours. Users of other crypto platforms have been cautioned to be vigilant against potential scams arising from the incident, such as fake support messages or emails claiming fund risks.
Experts believe the repercussions of this hack could extend beyond Binance, highlighting the potential fragility within the broader crypto ecosystem. The incident is likely to intensify regulatory oversight regarding how crypto platforms protect their infrastructure and customer assets. The growing concern in the financial industry is that advancements in AI could enable malicious actors to identify and exploit software vulnerabilities more rapidly than human attackers, a scenario previously warned about by the Bank of England.
Cryptocurrency has gained popularity as an investment and transfer method due to its decentralized nature, bypassing traditional central banks and governments. This decentralization appeals to those seeking financial freedom, but it also contributes to the volatility of digital assets. Estimates suggest that between 560 million and 741 million people worldwide owned cryptocurrency in 2026.