WORLDTECHBinance confirms hot wallet breach moving $6.3 billion, says customer funds are safe
Binance co-CEO Richard Teng has confirmed a security breach affecting the exchange's hot wallet infrastructure, involving a $6.3 billion asset movement. Teng says customer funds remain secure because they are held in cold storage.
What the company has confirmed
According to a report by Crypto Briefing, Binance co-CEO Richard Teng confirmed that a security breach occurred and that it affected Binance's hot wallet infrastructure. Hot wallets are cryptocurrency storage systems connected to the internet.
The incident involved a $6.3 billion asset movement. Binance has committed to cover all losses using company reserves.
Customer funds and accounts
Teng assured users that customer funds were secure, as they remained in cold storage, meaning crypto keys are kept on a device not connected to the internet.
The report also states that no customer accounts were compromised during the breach, which it suggests points to a robust internal risk management process.
About the company
Binance is a cryptocurrency exchange and finance company based in the United Arab Emirates.
What is not yet clear
The available reporting rests on a single outlet, Crypto Briefing, and the details it gives come from Teng's assurances. The account of how the breach happened and how the losses will be covered has not been independently verified in the facts supplied.
Open questions
- How was the hot wallet breach carried out?
- How will Binance's reserves be used to cover the losses?