Binance hack prompts Thai scrutiny

The Thai unit of Binance, the world's largest cryptocurrency exchange, has assured customers that their assets remain safe after its parent company was hacked in what is being dubbed the biggest crypto heist in history.

The Thai Securities and Exchange Commission (SEC) said it is monitoring exposure.

Binance is investigating a major cybersecurity incident with an estimated financial impact of US$6.3 billion. In response, its Thai affiliate temporarily suspended digital asset deposits and withdrawals as a precaution.

The incident came to light following reports of suspicious transactions involving digital assets linked to Binance. Initial estimates put the value of the transactions at about $5.7 billion, or 185 billion baht, before Binance revised its estimate of the total impact to $6.3 billion in an update on Oct 30.

A preliminary investigation suggests an attacker may have gained access through a compromised laptop belonging to a DevOps engineer, potentially enabling access to a service container and the submission of unauthorised withdrawal transactions.

Binance said it found no evidence that wallet private keys had been leaked, while emphasising that the investigation was ongoing as well as a detailed technical review.

The exchange worked with blockchain partners to freeze about $3 billion in affected assets on-chain, adding it would cover all losses using its Secure Asset Fund for Users and company funds, assuring customers that their assets remained safe.

In response to the incident, Binance suspended deposits and withdrawals while reviewing its security controls, revoking authorisations for affected addresses, and working with law enforcement agencies and blockchain intelligence partners to trace and recover the assets.

However, the amount frozen does not necessarily represent funds that have been fully recovered.

The incident has renewed concerns about cybersecurity risks at centralised cryptocurrency exchanges and the potential exposure of customers using platforms operating under the Binance brand in other markets.

ASSETS SECURE

Gulf Binance Co, the operator of Binance TH, said digital assets held by its Thai customers remained safe because its offline storage system was separate from Binance's wallets.

The company said Binance TH operates as an independent legal entity with its own digital asset custody system, separate from that of the global exchange.

As a precaution, the company temporarily suspended digital asset deposits and withdrawals while its specialists conducted a comprehensive security review.

Other services on the Thai platform remain available as usual. Deposits and withdrawals will resume once the security checks are complete, although the company has yet to announce a specific reopening date.

Gulf Binance said protecting customer assets remained its highest priority and reaffirmed its commitment to maintaining relevant security standards.

Binance TH announced yesterday afternoon it resumed normal trading, baht deposits and withdrawals, and digital asset deposits following initial system checks. However, digital asset withdrawals remain temporarily suspended as the company conducts further security reviews, despite finding no irregularities during its preliminary checks.

Gulf Binance said customers' digital assets remained safe and withdrawals would resume as soon as possible. The company plans to announce the resumption of withdrawals through Binance TH's official channels.

NO SIGNIFICANT IMPACT

The SEC said it was monitoring Binance's overseas operations and coordinated with licensed digital asset operators in Thailand to assess potential risks to customer assets.

Based on information reported by local operators, the regulator said it found no significant impact on customer assets held in their custody.

However, some assets potentially associated with transactions conducted through the overseas Binance platform remained under monitoring. The facts surrounding the incident and the extent of any potential losses are still being investigated.

The SEC instructed relevant operators to continue monitoring developments and assessing risks, verify the status and security of customer assets, and immediately report any incidents that could affect customer holdings or services.

Operators must also provide customers with accurate and timely information if service restrictions or other impacts arise.

The regulator stressed that the incident occurred on Binance's overseas platform, which is not directly supervised by the Thai SEC. The commission is focused on monitoring licensed operators in Thailand and protecting investors who use their services.

The SEC also urged investors to follow official announcements, use only licensed digital asset operators and remain vigilant against scams seeking to exploit the incident to solicit asset transfers.

Investors can verify the licensing status of digital asset operators through the SEC's official website at www.sec.or.th or contact the SEC Complaint Centre at 1207.