Archive photo: Binance-branded merchandise, July 2022. Bretwa / CC BY-SA 4.0; cropped.
Binance has temporarily suspended deposits and withdrawals while investigating a security incident it estimates affected around $6.3 billion in assets, with about $3 billion frozen on-chain so far, according to a new company update.
The cryptocurrency exchange said its initial investigation suggests an attacker gained access through a compromised DevOps engineer’s laptop and submitted unauthorized withdrawal transactions. Binance said it had found no evidence that wallet private keys had leaked.
The figures and the account of how the incident occurred remain preliminary. In its official Security Incident Update, the company said it would release a detailed technical report after the investigation is complete and the facts are fully verified.
Frozen assets are not a confirmed loss tally
Binance described approximately $6.3 billion as the estimated “total impact” and about $3 billion as assets frozen on-chain through work with blockchain partners. Those are different measures. The company did not present the frozen amount as a final tally of assets stolen, permanently lost or returned to customers.
“Binance will cover all losses from the SAFU fund and the company’s funds,” the announcement said. It also said user funds are safe. Those are the company’s assurances; the investigation and recovery efforts are still underway.
Binance said it would publish an updated Proof of Reserves after remediation is complete.
Transfers paused while checks continue
The exchange said the deposit and withdrawal suspension is a precaution while security checks are completed. Its announcement did not give a time for restoring those services.
Binance also said it had revoked the affected address authorization and engaged law enforcement and blockchain-intelligence partners to trace and recover funds.
For customers, the immediate practical issue is access to transfers while the checks continue. The update does not establish a timetable for when a deposit or withdrawal can be processed, and a freeze on affected assets is not the same as completing their recovery.
The company said its teams were working around the clock and that it was working with law enforcement to identify those responsible. It directed users to its official announcement channel for further updates.
JBizNews Desk | Markets
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