Binance reported that damage from the security incident is about $6.3 billion. A preliminary investigation points to a compromised laptop belonging to a DevOps engineer, according to the exchange’s statement of October 30.
According to Binance, the attacker used the laptop to gain access to a service container and sent unauthorized withdrawal transactions. The exchange is working with blockchain partners to freeze the affected assets and said that about $3 billion has been frozen on-chain.
Binance pledged to cover all losses from the SAFU fund and the company’s own funds. User funds, the exchange said, are safe. Once remediation is complete, Binance will publish an updated proof of reserves.
As precautionary measures, the company has temporarily suspended deposits and withdrawals until security checks are finished, and revoked authorization for the affected address. Law enforcement agencies and blockchain analytics partners are helping to trace and recover funds. The statement does not say when withdrawals will resume.
The gap between the damage and the frozen amount is about $3.3 billion. Beyond coverage from SAFU and company funds, Binance has not said how this portion will be recovered.
