Binance reports security incident, pledges to cover all user losses

Cryptocurrency exchange Binance announced on early Saturday that it is managing a security incident, pledging to cover all user losses and confirming that more than $6.34 billion has been reserved to protect customer balances.

"Your funds are safe; Binance is covering the impact of this incident, not you," the exchange said in a statement to users.

The platform said it has already allocated more than $6.34 billion in company reserves, including its Secure Asset Fund for Users, to offset the impact, with $5 billion held in the exact impacted token assets.

Binance said its initial investigation found no evidence of wallet private key leaks, adding that customer deposits and general trading activity remain unaffected.

The exchange is collaborating with law enforcement agencies, token issuers, blockchain intelligence firms and industry partners to track and recover the affected assets.

Around $3 billion in funds has already been frozen on-chain through cooperation with blockchain partners, according to the statement.

As a precautionary measure, Binance temporarily suspended withdrawals while conducting a security overhaul of its withdrawal services and associated addresses.

The company also revoked authorizations on affected addresses and engaged law enforcement authorities to pursue the perpetrators.

Binance said it will provide updates on the restoration of withdrawal services, publish a comprehensive technical post-mortem report once the investigation concludes, and release an updated proof-of-reserves report to verify user balances.