Binance reports $6.3bn breach as US regulator presses for crypto safeguards

NEW DELHI | 31-10-2026 : Binance has reported a security breach involving an estimated $6.3 billion, prompting a suspension of deposits and withdrawals and renewed calls for cryptocurrency regulation. According to Reuters, in a report published by Deccan Chronicle, the exchange said it would cover hacking losses and had worked with partners to freeze about $3 billion in affected assets.

The National reported that Binance announced the incident on Thursday and that the investigation remained under way. Reuters cited blockchain analytics company Chainalysis and other industry experts as saying the incident could represent the largest cryptocurrency theft on record.

Investigation points to engineer’s laptop

According to both outlets, Binance’s preliminary investigation suggested that an attacker may have compromised an engineer’s laptop. The National reported that the suspected intrusion allowed access to a service container through which unauthorised withdrawal transactions were submitted. That explanation remains an initial finding rather than a completed assessment.

Reuters reported that Binance temporarily halted deposits and withdrawals while security teams checked systems, secured wallet infrastructure and traced affected assets with industry and law-enforcement partners. Co-founder Yi He said the company would absorb the hacking losses.

In a separate analysis, The National reported that Binance had found no evidence of leaked wallet private keys, had revoked affected authorisations and planned an updated proof of reserves. The exchange said it would use its Secure Asset Fund for Users and its balance sheet to cover losses, according to that report.

Billions frozen, recovery still uncertain

Reuters reported that Tether froze nearly $1.57 billion linked to the incident, while Circle froze more than $800 million. Yi said Ripple had frozen roughly $200 million, alongside $27 million in stablecoins and about $2 million in World Liberty Financial tokens.

The Reuters account put the overall amount frozen at approximately $3 billion and said Binance had provided no update on the remaining $3.3 billion. The reported freezes do not establish that the assets have been returned to customers or that the recovery process is complete.

The National’s analysis highlighted the role of stablecoin issuers in blocking affected funds, arguing that the response demonstrated cryptocurrency markets’ continuing dependence on intermediaries. It also distinguished the suspected failure of access controls from a flaw in blockchain cryptography.

Regulatory pressure and market losses

US Commodity Futures Trading Commission chairman Michael Selig said the breach reinforced the case for cryptocurrency market rules, according to The National’s account of his Friday appearance on CNBC. He said his agency wanted exchanges to be able to register with the CFTC and argued that stronger safeguards could help address such incidents.

Markets fell after the disclosure. Reuters reported that Bitcoin dropped more than 3 per cent to $76,368 in early Asian trading on Friday, while Ether declined more than 3 per cent to $2,178. BNB fell 5 per cent over 24 hours in that report; The National’s separate analysis described a decline of around 7 per cent. The reports give different snapshots of the token’s losses.

Reuters also reported that Binance.US, a separate exchange, said it was unaffected. Coinbase likewise said it had not been affected and was monitoring developments.

Sources: Reuters via Deccan Chronicle; The National.