Binance allocates $5 billion to cover losses after $6 billion hack

Binance announced that more than $6 billion in assets moved through wallets linked to a security breach on Thursday, prompting the exchange to earmark $5 billion to cover the losses and to arrange the purchase of an additional $1.34 billion in cryptocurrencies. The company said the hack affected corporate holdings rather than customer accounts, and co-CEO Richard Teng reassured users that "Your assets are safe" and that customer funds were not used.

The U.S. Secret Service confirmed it is collaborating with private-sector partners, including Circle, to identify, freeze, trace and recover the stolen funds, and is coordinating with the U.S. Attorney’s Office for the District of Columbia. The investigation is described as being in its early stages.

Crypto market prices fell following the incident, with Bitcoin dropping more than 5 % to around $77,000 and other digital assets declining up to 9 %. Analysts noted that the hack could extend regulatory scrutiny of the sector, which has already faced setbacks such as the failed Clarity Act legislation.

Laura Clatworthy, head of digital assets at Edwin Coe, said the breach underscores a need for Binance to address the losses to protect its reputation and that broader cooperation may be required within the industry. Tether and Circle quickly moved to freeze assets tied to the hack, though blockchain analysis firm TRM Labs estimates that $2.4 billion in Bitcoin and Ethereum may never be recovered.

Binance’s statement indicated that the attack began with a compromised laptop but later uncovered additional breach points. While some analysts linked the tactics to previous operations attributed to North Korean actors, Binance has not identified the perpetrators. The incident unfolded over roughly 20 minutes starting at about 4 p.m. ET on Thursday.