Binance Sets Aside $6.34 Billion After Biggest Crypto Hack Ever
Binance is using its own funds and its emergency fund to compensate users; Tether and Circle together froze more than $2 billion in stablecoins.
Key Takeaways
- Binance is setting aside $6.34 billion to cover losses after the record hack on October 29.
- About $3 billion in stolen assets has now been frozen on the blockchain.
- The hack is the biggest crypto theft so far and tops the Bybit hack from February 2025.
Binance said it is setting aside $6.34 billion (€5.7 billion) to cover losses after the record hack on October 29. The crypto company wants to fully compensate users, while about $3 billion (€2.7 billion) in stolen assets has now been frozen on the blockchain.
Biggest Theft So Far
According to the initial investigations, the breach started with a compromised laptop belonging to a DevOps engineer. That gave the attacker access to a service container and allowed fraudulent withdrawal transactions to be submitted. The hack is considered the biggest crypto theft so far and is larger than the previous record set by the Bybit hack in February 2025, when $1.5 billion (€1.3 billion) was stolen.
Binance said it is covering the damage with its own funds and with the Secure Asset Fund for Users, the emergency fund the company set up earlier for incidents like this. Blockchain partners also helped block part of the loot. Tether and Circle reportedly froze more than $2 billion (€1.8 billion) in stablecoins combined. Earlier, it was already clear how quickly the impact of an attack like this can spread when a large outflow at Binance put pressure on the market.
Market and Liquidity Under Pressure
The hack came alongside a broad sell-off in the crypto market. Bitcoin fell below $77,000 (€69,200) and Ethereum dropped more than 5%. Big security incidents like this show how quickly trust and liquidity can shift in the market, especially when large amounts can be moved right away.
Why This Matters
For European crypto investors, this incident is especially relevant because it shows how important it is to freeze stolen funds quickly. It also highlights the role of major stablecoin issuers and blockchain partners in limiting damage after an attack. For users of crypto exchanges, this remains a clear reminder that security and emergency funds play a big role in trust in a platform.
