Binance says it will absorb all losses from $6.3 billion breach
Security & Exploits ·
The exchange's co-CEO says every affected user will be made whole after a multi-point security incident, with roughly $3 billion in stolen assets already frozen.
Richard Teng, Binance's co-chief executive, said the exchange will cover the full scope of losses tied to a security incident now estimated at $6.3 billion, stressing that the breach stemmed from several distinct points of entry rather than the actions of one insider, according to CryptoPotato. Binance paused withdrawals while it revised its security protocols and began working with law enforcement and blockchain analytics firms to trace the stolen funds, the same report noted, adding that about $3 billion has already been frozen.
A technical breakdown shared by Binance's co-CEO pointed to attackers using self-destruct mechanisms alongside an exploit tied to EIP-7702 during the intrusion, part of an ongoing investigation detailed by wublockchain.xyz. Binance has formally confirmed it revoked the authorizations tied to the compromised addresses as part of its response.
Separately, the exchange said it has already replenished 90 percent of the stolen assets, drawing on $6.34 billion in company reserves, according to an official Binance notice. CZ has said the SAFU fund will cover remaining losses and argued that Bitcoin's price reaction to the incident stayed contained, a statement circulated via a post on X.
Public response to the disclosures has split between users crediting Binance for transparency and others voicing distrust of the exchange's handling of the incident, with that uncertainty coinciding with broader market softness. Bitcoin and Ethereum both dipped in the wake of the news, and separate reporting ties the decline to wider weakness across Bitcoin, Ethereum and Ripple, with analysts flagging potential support levels. Trump has also weighed in publicly on the reported theft, voicing caution about risks tied to digital money while noting that possible North Korean involvement remains under investigation.
What remains unresolved includes the final accounting of losses once recovery efforts conclude, the identity and location of those behind the multiple breach points, and whether the $3 billion already frozen will ultimately be returned to affected users. The timeline for restoring withdrawals and the full results of the law enforcement collaboration have not yet been disclosed.