The world's largest cryptocurrency exchange, Binance, was hacked on Oct. 29, losing US$6.3 billion (about HK$49.4 billion), shocking the industry and prompting multiple crypto trading platforms to immediately strengthen security. The US Federal Bureau of Investigation (FBI) has intervened in the investigation into the Binance theft.
Binance co-CEO He Yi said the incident was a "complex attack" not carried out by one person, involving a compromised laptop and malware designed to delete evidence of its activity, making it harder for the company to trace and investigate. She later revealed that Binance's investigation showed there were "other vulnerabilities" in its systems and on that laptop. The incident lasted about 20 minutes, and Binance said the company will bear all losses.
A spokesperson for US crypto exchange Kraken said its team searches for potential vulnerabilities every day. Coinbase announced that, as a precaution, it has set its system for storing crypto funds offline. Many companies also sought to reassure customers, stressing that their virtual currencies remain safe.
Executives from multiple crypto trading platforms called on the industry the same day to jointly establish a common system for detecting hacker intrusions. OKX founder and CEO Star Xu said in a post on social media platform X that the industry needs a real-time alert system in which participants can immediately share information when hacked, coordinate rapid responses and temporarily freeze suspected stolen funds. Rizman, chief legal and strategy officer at another crypto firm, GSR, said that even though Binance has to directly deal with the breach, he expects the industry broadly has not suffered material losses. He also noted that the incident may push the industry to continue improving security.
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Binance hacked, losing US$6.3 bn in what may be the largest theft in history
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