Binance said a security incident impacted about $6.3 billion in client assets, with around $3 billion frozen on-chain, marking the largest crypto hack on record. The old record was a $1.5 billion hack of the Bybit exchange last year. (CNBC) (Engadget)
How Binance responded
Binance said it would cover all losses using funds from its SAFU fund and the company, and user funds are safe. Tether and Circle froze large amounts tied to the attack, and withdrawals were paused. By Sunday, Binance said it had resumed withdrawals, starting with the bitcoin network. It says it has restored backing for about 90% of the affected assets. That doesn't mean it has recovered 90% of the funds from the attacker. (Binance hacked for an estimated $6.3 billion in record crypto theft - Engadget +2)
Who and how
Firms tracking the funds point to North Korean hackers. Binance's early findings suggest hackers gained access to its withdrawal systems and made unauthorized transfers, with no evidence that the wallets' private keys were leaked. The investigation is still ongoing. (Al Jazeera) (CNBC)
Market impact
On Oct. 30, the breach triggered widespread selling and about $1.57 billion in forced liquidations. Bitcoin was trading near $76,870, with $75,000 seen as a key level to watch. (fool) (fool)
Lessons for users
Even the biggest exchanges can be breached, so don't keep more on an exchange than you need to trade.
Use two-factor authentication and withdrawal whitelists.
Understand what a platform's reserve fund (like SAFU) can and can't cover.
Follow official announcements and be wary of "recovery" scams after incidents like this.
This is general information, not financial advice.