Binance, one of the world’s largest cryptocurrency exchanges, has uncovered further security vulnerabilities following a record $6.3 billion hack. CEO Richard Teng revealed new details of the sophisticated breach and confirmed a Sunday target for restoring withdrawals.
New details of the attack
Richard Teng, who leads Binance, shared that the hackers went beyond exploiting a single employee laptop. They utilized a self-destruct mechanism to wipe evidence and leveraged Ethereum’s EIP-7702 account-delegation feature to access a hot wallet, bypassing normal approval processes.
Teng described the incident as a “complex attack” and noted investigators continue to identify more breach points. The full sequence of the intrusion remains under review.
“This was a complex attack,” Teng explained. “We have identified additional compromise points, but the investigation is ongoing and the exact timeline is not yet clear.”
Reports had previously examined how the attackers gained permissions by exploiting account-delegation, deploying malicious code, and draining approximately $2.5 billion in assets within minutes.
Mini dictionary: EIP-7702 is an Ethereum protocol upgrade enabling temporary account delegation, allowing external smart contracts to control a user’s wallet for specific actions. This feature, while increasing flexibility for users, can be exploited if security is insufficient.
Response and asset protection efforts
Binance has suspended withdrawals as its team rebuilds and tests the platform’s infrastructure. The exchange is conducting a thorough review of cloud systems, employee devices, private-key management, and transaction-signing procedures. Teng stated that withdrawals are expected to be restored by Sunday, within roughly 40 hours.
The company has pledged to cover the full $6.3 billion loss using corporate reserves. According to Teng, Binance now holds over $6.34 billion in reserves, with $5 billion stored in the affected cryptocurrencies. The remainder is being acquired through exchanges and OTC transactions.
| Category | Amount Reserved | Source |
|---|---|---|
| Already held in affected cryptocurrencies | $5 billion | Binance corporate reserves |
| Being acquired via exchanges and OTC | Over $1.34 billion | External markets |
| Total reserved | $6.34 billion | To cover losses |
Teng clarified that the attack targeted Binance’s own hot wallet and not customer funds. However, separate research has indicated that these compromised wallets were previously listed as assets supporting customer balances.
Proof of reserves and ongoing investigation
Binance plans to release an initial proof-of-reserves update before publishing a comprehensive report on Monday. The company is also working with law enforcement agencies, blockchain investigators, and token issuers to attempt asset recovery.
The platform will publish its proof of reserves prior to Monday’s full report and is coordinating with outside partners to pursue the stolen assets.
