English
Binance, the world’s largest cryptocurrency exchange, has suffered a massive security breach that analysts say could be the biggest crypto theft in history. The attack resulted in an estimated $6.3 billion impact, sending shockwaves through digital asset markets and raising fresh questions about the safety of centralised exchanges.
How the Attack Unfolded
An initial investigation suggests the breach began with a hacked laptop belonging to one of Binance’s engineers. That access allowed an attacker to enter one of the exchange’s systems and make unauthorised withdrawals. Binance said it worked with partners to freeze affected assets, locating approximately $3 billion so far. The status of the remaining $3.3 billion remains unclear.
Stay connected to every major update — subscribe and follow us on the PhoenixQ website and across our social media platforms.
Binance co-founder Yi He confirmed the company would cover all losses resulting from the hack. “User funds remain safe,” Binance said in a statement. As a precaution, the exchange temporarily suspended all deposits and withdrawals while security teams investigated and secured wallet infrastructure.
Miguel Morel, CEO of blockchain intelligence firm Arkham, said data indicated that billions of dollars appeared to have been taken from Binance by an unknown actor. Analytics firm Chainalysis and other industry experts described the incident as the largest crypto hack on record. “It’s the biggest hack in history,” said Aravind Srinivasan, head of large crypto market maker GSR’s systematic OTC business.
Markets React Sharply
Markets responded immediately during early Asian trading on Friday. Bitcoin dropped more than 3% to a six-week low of $76,368. Ether also fell more than 3%, hitting a two-month low of $2,178. BNB, the token originally launched as Binance Coin, declined 5% over 24 hours to $709.70, according to market aggregator CoinGecko.
Shares in crypto exchange Coinbase Global slid 4.8% in extended US trading. Bitcoin buyer Strategy fell nearly 6% during the same session. Analysts warned the breach could have broader consequences for the crypto sector, which was already under pressure from higher US interest rates and weaker demand from exchange-traded fund buyers.
“It may further dampen risk appetite and prompt investors to reassess the safety of assets held on centralised exchanges, as well as counterparty, solvency and liquidity risks,” said Tim Sun, senior researcher at HashKey Group in Hong Kong.
Industry Partners Move to Freeze Funds
Several major crypto firms acted quickly to contain the damage. Stablecoin issuer Tether froze nearly $1.57 billion in assets linked to the incident. Circle froze more than $800 million. Crypto firm Ripple also froze roughly $200 million in funds, Yi confirmed.
World Liberty Financial, a crypto company linked to US President Donald Trump and his family, said it worked with cryptocurrency custodian BitGo to freeze stolen funds. Binance’s Yi said $27 million in stablecoins and about $2 million worth of World Liberty tokens were among the frozen assets.
Binance operates a secure asset fund held entirely in bitcoin, designed to protect users in the event of security breaches. The exchange has 335 million registered users globally and held approximately $162.8 billion in assets under custody, according to its 2025 annual report.
Broader Security Concerns
The Binance breach adds to a growing list of crypto thefts. Last year, attackers stole $2.9 billion across nearly 150 attacks, according to TRM Labs researchers. In September, exchange Bitget reported roughly $350 million in stolen crypto, highlighting the sector’s ongoing vulnerability.
Bernardo Brites, CEO of payments firm Trace Finance, warned that AI is making it harder to defend against attacks. “It’s becoming very hard to counter hacks as AI can find vulnerabilities faster than you can fix them,” he said. He added that users may increasingly move away from smaller exchanges unable to absorb large-scale losses.
Binance.US, a separate entity, confirmed it was not affected. Coinbase also said it was unaffected and monitoring the situation. In a separate incident on Thursday, prediction market operator Polymarket briefly halted trading after a third-party security issue before resuming and pledging to reimburse affected traders.
