KUALA LUMPUR – Weeks after the Securities Commission Malaysia (SC) flagged it for operating a digital asset exchange (DAX) without registration, cryptocurrency platform Binance has been hit by a suspected hack, with billions of dollars in digital assets at risk of loss.
The world's largest cryptocurrency exchange said it had frozen about US$3 billion (RM12.6 billion) in crypto assets as it investigates the suspected security breach, which could rank among the largest cryptocurrency thefts on record.
Reuters reported that the exchange said the amount frozen could increase as it works with law enforcement agencies, token issuers, blockchain intelligence firms, and other industry partners to trace and freeze additional assets.
Binance co-founder Yi He said the company would cover all losses arising from the incident.
"Binance will cover all hacking losses," she said, without providing further details.
The suspected breach triggered an immediate market reaction, with Bitcoin falling about 2% to a six-week low of US$77,646, while Ether dropped around 2% to a two-month low of US$2,238.76.
Binance's native token, BNB, plunged more than 8% over 24 hours to US$694, according to CoinGecko.
Several cryptocurrency firms also moved to freeze assets linked to the incident. Tether said it had frozen nearly US$1.57 billion, while Circle froze more than US$800 million.
Cryptocurrency firm Ripple also froze approximately US$200 million, according to Yi.
World Liberty Financial, a cryptocurrency company linked to US President Donald Trump and his family, said it had worked with custodian BitGo to freeze funds connected to the incident.
Yi said US$27 million in stablecoins and about US$2 million worth of World Liberty tokens had been frozen.
Binance co-founder Changpeng Zhao, who no longer runs the exchange, described the incident as something that "looked like a hack" in a post on X.
Binance said user funds remained safe and that it was conducting security checks while working to resolve the issue. Withdrawals would resume once the checks were completed, while trading on its Binance Alpha platform was also temporarily suspended as a precaution.
The exchange also operates a Secure Asset Fund for Users (SAFU), an emergency reserve held in Bitcoin to protect customers in the event of security breaches.
Trace Finance chief executive Bernardo Brites warned that artificial intelligence was making cyberattacks increasingly difficult to prevent by allowing hackers to identify vulnerabilities faster than companies could fix them.
He also predicted that users could move away from smaller and medium-sized exchanges over concerns about their ability to absorb major losses.
The incident adds to growing concerns over cryptocurrency security. Researchers at TRM Labs estimated that US$2.9 billion worth of cryptocurrency was stolen across nearly 150 attacks last year.
In September, cryptocurrency exchange Bitget also reported the theft of approximately US$350 million in digital assets.
Binance remains on Malaysia's Investor Alert List
While the suspected security breach has drawn international attention, Binance also faces regulatory restrictions in Malaysia, where the Securities Commission Malaysia (SC) has again placed the exchange on its Investor Alert List.
In an update dated Oct 8, 2026, Binance was the only entity added to the list, which identifies unauthorised websites, investment products, companies, and individuals. The entry identified binance.com as the website concerned.
The exchange was first placed on the SC's Investor Alert List on July 4, 2020, for operating a digital asset exchange (DAX) without the regulator's approval.
On July 26, 2021, the SC reprimanded Binance for continuing to operate illegally in Malaysia and ordered it to cease its operations, including disabling its website and mobile applications for Malaysian users.
The regulator also directed Binance to stop distributing or publishing advertisements to Malaysian investors.
Binance was subsequently removed from the alert list in 2024 after the SC determined that it was no longer conducting regulated activities in Malaysia.
However, the Finance Ministry confirmed in a written parliamentary reply in July 2026 that Binance had not been licensed or registered by the SC to conduct capital market activities in Malaysia.
Responding to a question from Bagan MP Lim Guan Eng, the ministry also said Binance's website and application remained blocked in Malaysia.
It added that the SC would continue monitoring developments and take action against any breaches of the law or emerging risks to local investors.
Meanwhile, Binance.US, a separate cryptocurrency exchange, and Coinbase said their platforms were unaffected by the latest security incident.
In a separate development, prediction market operator Polymarket temporarily halted trading on Thursday following a security incident involving a third-party provider. Trading later resumed, with the company promising full reimbursement to affected traders. — October 30, 2026
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