Binance pauses withdrawals after $6.3bn hack: what Nigerian crypto users should know

Binance, the world's largest cryptocurrency exchange, has suspended withdrawals after a security breach it estimates affected about $6.3 billion in funds. The exchange says deposits are working, customer balances are safe and it will cover every loss from its emergency fund and company money. It expects to restart withdrawals in stages, possibly by Sunday 1 November.

Binance said on Friday 30 October that it had paused all withdrawals while it investigates what is being described as the largest cryptocurrency theft on record. Co-chief executive Richard Teng said the exchange's first findings suggest the attack began with a compromised laptop belonging to one of its engineers, which gave the attacker access to an internal system used to submit withdrawal transactions, TheCable reported. Binance later said it had found further points of breach and that the attack was more complex than a single compromised account.

The exchange put the financial impact at about $6.3 billion and said around $3 billion has been frozen on the blockchain with the help of partners. Tether, which issues the USDT stablecoin, said it froze more than $1.5 billion, and Circle, which issues USDC, said it froze about $800 million, BusinessDay reported. Blockchain analysis firm TRM Labs linked the attack to TraderTraitor, a hacking group associated with North Korea. Binance said it has found no evidence that the private keys controlling its wallets were exposed, and it is working with law enforcement agencies.

Teng said deposits are unaffected and that losses will be covered through Binance's Secure Asset Fund for Users (SAFU), an emergency reserve set up in 2018, together with company funds. Binance said withdrawals would return within about 45 hours of its Friday update, after security checks, and co-founder Yi He said the exchange expected to restore them by Sunday. The news pushed the price of Bitcoin below $77,000, its lowest level in over a month, before it recovered slightly.

Binance stopped naira deposits, withdrawals and naira trading on its platform in March 2024, so for Nigerian users the pause affects moving crypto out of Binance, including transfers to other wallets or platforms. Nigeria's Securities and Exchange Commission said in 2023 that Binance was not registered to operate in Nigeria and warned that crypto investments can be lost entirely. Many Nigerian users online said they were waiting to move their coins, while others shared screenshots of balances and fake 'refund' messages.

Pidgin: Binance, the biggest crypto exchange for the world, don stop withdrawal after hackers touch about $6.3 billion. Dem talk say your money dey safe, deposit still dey work, and dem go cover every loss. Dem expect make withdrawal start again small-small from around Sunday. No click any 'refund' link wey person send you.

How this affects you: If you hold crypto on Binance, you do not need to do anything to be covered, according to the exchange. Check for updates only inside the official Binance app or website, and ignore messages, calls or links that offer 'refunds', 'recovery' or early withdrawals: these are common scams after a hack. Never share your password, two-factor codes or seed phrase. When withdrawals return, expect delays and do not rush large transfers to unfamiliar platforms.