Binance Grapples With ‘Security Incident’ That May Cause $6.3 Billion in Losses

The world's largest cryptocurrency exchange, Binance, recently suspended deposits and withdrawals due to a security incident that may result in $6.3 billion in losses. According to The New York Times, the incident occurred in late October 2026, but the full extent of the damage and details of the hack have not been fully disclosed.

Binance confirmed a potential security issue and reported that approximately $6.3 billion was impacted. The company stated that its teams were working around the clock to resolve the issue. Some sources suggest that the Ethereum upgrade, EIP-7702, may have played a role in amplifying the losses, but it is unclear if it was the direct cause of the hack. The FBI has linked the hack to North Korea, according to the BBC Business and South China Morning Post.

Following the incident, Binance reopened customer withdrawals in phases, starting with bitcoin, as reported by CoinDesk. The exchange saw a significant spike in withdrawals, with customers pulling $3.64 billion, or 2.1% of its assets, as it went back online. Binance reportedly covered 90% of the losses, according to BBC Business.

The incident has raised concerns about the security of cryptocurrency exchanges, and readers should watch for further updates on the investigation and any potential implications for the crypto market. It remains to be seen how Binance will recover from the incident and what measures it will take to prevent similar incidents in the future.