CoinDesk
Binance co-CEO Richard Teng says investigators found additional security breaches in the $6.3 billion hack, beyond an initially suspected compromised employee laptop. The attackers used a self-destruct mechanism to erase evidence and exploited Ethereum’s EIP-7702 account-delegation feature to take control of a hot wallet without Binance’s normal approval procedures.
Binance has suspended withdrawals while rebuilding and testing its infrastructure. Teng said the exchange is targeting a Sunday restart, approximately 40 hours after his statement, and is reviewing cloud systems, employee devices, private-key management and transaction-signing procedures. Investigators have not yet established the full sequence of events.
Why it matters
The attack highlights the risks of delegated account permissions and hot-wallet controls. Binance says the attackers targeted its own hot wallet rather than customer funds, but an examination of reserve data found the compromised wallets had previously appeared in a list of assets backing customer balances.
Teng said Binance committed to cover all $6.3 billion in losses with company funds. He cited more than $6.34 billion reserved, including $5 billion already held in the affected cryptocurrencies, with the remaining assets being purchased through exchanges and OTC markets.
Market impact
Withdrawals remain suspended pending infrastructure checks, making the planned Sunday restart a key operational milestone for Binance users. The exchange also plans an initial proof-of-reserves update before releasing a full report Monday.
Binance is working with law enforcement, blockchain investigators and token issuers to recover stolen assets. The recovery effort and forthcoming reserve disclosures will be important to assessing the exchange’s response to the breach.
Frequently asked questions
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How did attackers gain control of Binance’s hot wallet?
Teng said they exploited Ethereum’s EIP-7702 account-delegation feature to take control without Binance’s normal approval procedures.
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When does Binance expect to restore withdrawals?
Binance is targeting a Sunday restart while it rebuilds and tests its infrastructure. The timing is a target, not a confirmed reopening.
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What has Binance said about covering the hack’s losses?
Teng said Binance would cover the $6.3 billion in losses with company funds and cited more than $6.34 billion reserved.
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Why have the compromised wallets raised questions about customer reserves?
Binance says the attack targeted its own hot wallet, not customer funds. An examination of reserve data found the compromised wallets had previously appeared in a list of assets backing customer balances.
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What disclosures does Binance plan after the breach?
Binance plans an initial proof-of-reserves update before releasing a full report Monday. Teng also said the exchange is working with investigators and token issuers to recover stolen assets.
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