This Is What Binance Has Done Following $6.3B Hack
Binance has confirmed a security breach affecting $6.3 billion and pledged to cover all customer losses through its SAFU fund.
Following the massive security breach, Binance co-CEO Richard Teng informed customers that the company will cover all losses from the incident, which impacted an estimated $6.3 billion. The exchange has revoked affected address authorizations and is collaborating with law enforcement and blockchain firms to trace and recover the stolen assets.
Complex Attack Revealed
Initial investigations suggested the attacker gained access through a DevOps engineer's compromised laptop, allowing unauthorized withdrawals. However, Binance later clarified that the breach was more complex, with additional points of attack discovered. The company found no evidence of a private key leak.
Market Impact and Criticism
The hack caused significant market disruption, with Bitcoin briefly dropping to $76,300 and liquidating nearly $479 million in positions, while Ethereum recorded $363 million in liquidations. Despite Binance's assurance that customer funds are safe, public criticism has grown.
Some users praised the exchange's transparency, while others remained skeptical. Crypto watchdog MASTR called Binance incompetent, and former X executive Nikita Bier criticized co-founder Changpeng Zhao's response to the incident.
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