Binance estimates security breach impact at $6.3 billion
LONDON -- Binance is investigating a major security incident that resulted in unauthorized withdrawals estimated to have a financial impact of about $6.3 billion, the cryptocurrency exchange said.
The company's initial investigation suggests an attacker may have gained access through a compromised laptop belonging to a DevOps engineer, allowing unauthorized withdrawal transactions. Binance said a subsequent investigation also uncovered additional points of breach but did not confirm where.
"This was a complex attack, and we are doing all we can in coordination with law enforcement to resolve it," Binance said in a statement. "We are still gathering the facts, and will share more directly as we have them."
In the statement, the cryptocurrency exchange said it would publish a detailed technical post-mortem once its investigation was complete and the facts had been verified.
Binance estimated the total financial impact at about $6.3 billion, adding that it had worked with blockchain partners to freeze approximately $3 billion in affected assets on-chain.
"Binance will cover all losses from the SAFU fund and the company’s funds," the company said in a statement following the security breach. "User funds are safe. We will also publish an updated Proof of Reserves once the remediation is complete."
As an immediate precaution, Binance said it had temporarily suspended deposits and withdrawals while security checks were underway.
“Our teams are working around the clock to resolve this issue safely and thoroughly,” Binance said, adding that it was working with law enforcement partners to identify those responsible and bring them to justice.
This is a developing story. Please check back for updates.
-ABC News' Rashid Haddou contributed to this report.
