Binance halts deposits and withdrawals, estimates breach impact at $6.3 billion

Binance has temporarily halted deposits and withdrawals while investigating unauthorized withdrawals that it estimates had a financial impact of about $6.3 billion, according to ABC7 Los Angeles. The cryptocurrency exchange said it would use its SAFU fund and company funds to cover all losses.

The suspension interrupts customers' ability to move funds into or out of the exchange while security checks proceed. Binance said user funds were safe and that blockchain partners had helped freeze about $3 billion in affected assets on-chain.

According to ABC7 Los Angeles, Binance's preliminary investigation pointed to a possible compromise of a DevOps engineer's laptop. The exchange said that access may have enabled the unauthorized withdrawal transactions.

A subsequent investigation identified additional breach points, but their locations were not confirmed, the report said. The suspected laptop compromise remains an initial explanation rather than a final finding.

Binance said it was conducting security checks and coordinating with law enforcement as it investigated the incident. It also said it was working with blockchain partners to freeze affected assets on-chain.

The exchange's estimate of the financial impact and its account of the asset freezes came from the company. Binance said its SAFU fund and corporate funds would be used to absorb all losses.

Binance said it would release a detailed technical account after completing its investigation and verifying the facts. It also pledged to publish an updated Proof of Reserves once remediation was complete.