Binance, the world’s largest cryptocurrency exchange, has launched a security investigation into a potential cyber attack. After the incident, Binance and other crypto companies froze about $2.54 billion worth of digital assets. However, the company is yet to confirm whether users’ funds have been stolen or not. Stablecoin issuing companies Tether and Circle have also taken action in this matter. Tether has frozen over $1.5 billion and Circle over $800 million in related assets. Binance has temporarily halted deposits and withdrawals during a security investigation.
The crypto market saw a decline after the security related news came out. Bitcoin price hit a six-week low, while Binance’s token BNB also fell sharply. Binance says users’ funds are safe and the company is working closely with investigative agencies and other crypto companies. Currently, the possibility of cyber attack is being investigated in this matter. Official confirmation on the actual amount of damage and the reason behind the incident is awaited.
What is the whole matter?
Binance reported the potential security breach on October 29. Company founder Changpeng Zhao also described the incident as a possible hack. However, the company has not yet clarified what the cyber attack method was and how much damage it caused. According to Binance, its security team is investigating the matter. The company is working with law enforcement agencies and other crypto companies to identify suspicious transactions and freeze related assets.
Why was $2.54 billion worth of crypto assets frozen?
In this case, along with Binance, many other companies have also frozen digital assets related to suspicious transactions. These include stablecoin issuing companies Tether and Circle. The Tether Company has frozen related assets valued at approximately $1.57 billion. Over $800 million in assets were frozen in the circle. Other crypto companies also helped prevent and identify suspicious funds. According to Binance, the total verified value of fixed assets reached $2.54 billion. This figure may increase as the investigation progresses.
Is Binance customer money safe?
The biggest question on the minds of consumers after this incident is whether their money is safe. Binance has said that users’ funds are completely safe. The company also said it has temporarily shut down deposit and withdrawal facilities during security checks. However, the actual extent of the damage is not clear until the investigation is completed and all the information regarding the incident is out. It is also important to understand that freezing assets of $2.54 billion does not mean that the same amount has been stolen. Frozen funds are assets that are prevented from further transfer.
Crypto market drops due to cyber attack news
Security news related to Binance also had an impact on the prices of major cryptocurrencies. Bitcoin price hit a six-week low of $77,646. The price of Ether fell to a two-month low of $2,238.76. BNB i.e. this token of Binance saw a decline of more than 8% in 24 hours and the price reached around $694. These figures reflect the initial decline in the market after the event. Cryptocurrency prices fluctuate rapidly, so these levels should not be considered current prices.
