Binance to Cover Customer Losses After Hackers Stole $6.3 Billion – THIS UPDATE

Binance has vowed to cover customer losses after hackers stole around $6.3 billion in cryptocurrencies, forcing the world’s largest cryptocurrency exchange to suspend withdrawals and sending digital asset prices down.

The theft, described by blockchain investigators as the largest cryptocurrency theft ever recorded, occurred late on October 29. Binance said that approximately $3 billion in affected assets have been frozen thanks to cooperation with blockchain partners.

Frozen assets cannot circulate freely, but this does not mean that they have already been returned to the stock exchange.

“Your money is safe and we are covering any losses,” said co-chief executive Richard Teng. Binance expects to restore withdrawals within 48 hours as it completes security work, although this remains an estimate rather than confirmation that customers can access their funds.

Binance’s preliminary investigation indicates a compromised laptop belonging to a DevOps engineer.

The exchange said the attacker may have used it to access a service container, part of its IT infrastructure, and send unauthorized withdrawal transactions.

Blockchain analytics firm TRM Labs has tracked approximately $6.36 billion transferred from Binance wallets to attacker-controlled addresses across ten blockchains.

Most of the money was moved in about 20 minutes, even though preparations began at least 36 hours earlier, the company said.

TRM attributed the attack to TraderTraitor, a North Korean hacking group, citing blockchain records and other intelligence information.

He identified similarities to the February 2025 Bybit theft, which the FBI attributed to the same group.

Chainalysis also linked the Binance attack to North Korea. Binance, however, said its investigation did not place responsibility on any individual. The investigators’ assessments should therefore be distinguished from the findings of the exchange.

Binance’s Secure Asset Fund for Users, intended to protect customers during security incidents, is a $1 billion reserve held in bitcoin.

The estimated theft amounts to more than six times that amount, although freezing assets could reduce any loss. Teng said corporate funds will also support the repayment commitment.

Tether froze nearly $1.57 billion related to the incident, while Circle froze more than $800 million. Other issuers and partners have also limited affected activities.

Markets collapsed as the news spread. Bitcoin hit $76,368, its lowest level in six weeks, while ether fell more than 3% to $2,178. These were prices recorded during the sell-off, rather than fixed closing values.

For Nigerian customers holding cryptocurrencies on Binance, the immediate issue is access. The promise to cover losses does not in itself restore withdrawals, and customers needing to transfer funds must wait for the exchange to reopen.

The incident also exposes two distinct risks related to holding assets on the stock market. A client may face declining token prices and at the same time not be able to move holdings.

Binance’s refund commitment addresses losses resulting from the breach; does not promise compensation for market declines.