Summary
It does look like a hack on Binance. Appreciate the quick freeze from Tether (~$971m) and Circle (~$823m). I don't manage Binance (.com) anymore, but …
What this means for you
For Chinese readers in the US who use centralized crypto exchanges, the reported Binance attack is mainly about asset access and safety: Binance said it suspended withdrawals for a security revamp while deposits were normal. The company said it would cover all losses using its SAFU fund and company funds and that user funds are safe. The article says the estimated total impact is around $6.3 billion and that funds have been frozen on-chain, but it does not say when withdrawals will resume. Readers with balances on such platforms therefore face the practical question of whether to keep assets there while the investigation and freezes continue.
The company promised to cover all losses but has suspended withdrawals.
Cryptocurrency exchange Binance has reportedly been hit with a cyber attack that resulted in an estimated $6.3 billion loss, The New York Times reported. The company promised to cover all losses but has suspended withdrawals. The value of the theft would be a record if accurate, easily eclipsing a $1.5 billion hack of the Bybit exchange last year.
"The estimated total impact is around $6.3 billion, and [Binance] has worked with blockchain partners to freeze affected assets, with approximately $3 billion frozen on-chain so far," the company wrote in an article on its website. "Binance... will cover all losses using funds from its SAFU [Secure Asset Fund for Users] fund and the company, and user funds are safe."
Binance clarified in another article that it had frozen withdrawals "for [a] security revamp," but that deposits were "normal." Cryto platforms Tether and Circle said they've frozen $1.5 billion and $800 million in funds, respectively, associated with the attack.
User funds are safe!
It does look like a hack on Binance. Appreciate the quick freeze from Tether (~$971m) and Circle (~$823m).
I don't manage Binance (.com) anymore, but as a shareholder, I expect all user funds will be fully covered. https://t.co/oufpyNChxI
— CZ BNB (@cz_binance) October 29, 2026
The hack may have started with a compromised DevOps laptop. "The exchange's initial investigation suggests that a compromised DevOps engineer's laptop may have enabled an attacker to access a service container and submit unauthorized withdrawal transactions," Binance wrote.
Multiple reports point to North Korea as the culprit. Security research firm TRM labs attributed the attack to TraderTraitor, North Korea's elite hacking unit, "based on robust on- and off-chain intelligence." It added that it makes the judgement with "high confidence," and is tracking the funds and alerting partners through its Beacon Network, which tracks real-time crypto crimes.
The scope of the hack has shocked the crypto community. "It may further dampen risk appetite and prompt investors to reassess the safety of assets held on centralized exchanges, as well as counterparty, solvency and liquidity risks," HashKey Group senior researcher Tim Sun told Reuters.
Binance founder Changpeng Zhao plead guilty in 2023 to a felony around his failure to prevent money laundering, but was pardoned by Donald Trump in 2025. The company has a business relationship with the Trump family crypto business, World Liberty Financial.
Source: Engadget
Join the discussion
Have you ever held funds on a centralized crypto exchange during a withdrawal freeze? Would you wait for the platform to resume withdrawals, move assets when possible, or avoid such exchanges going forward?
