Abu Dhabi Global Market’s Financial Services Regulatory Authority (FSRA) said on Friday it is engaging closely with Binance and monitoring a security incident at the cryptocurrency exchange that Binance estimates had a financial impact of about $6.3 billion.
The FSRA said in a statement that it is aware of the matter, which concerns unauthorized withdrawals of assets on October 30.
“Protecting the interests of clients and supporting the integrity and orderly functioning of markets remain the FSRA’s key priorities,” the regulator said.
What Binance said
Binance said it had worked with blockchain partners to freeze about $3 billion of the affected assets on-chain.
The exchange said it has reserved more than $6.34 billion of company funds to cover the incident, Khaleej Times reported. About $5 billion of that is held in the same token assets that were affected.
Binance said it will cover all losses from its SAFU emergency fund and company funds, and that user funds are safe. It has temporarily suspended deposits and withdrawals while security checks are completed.
The company’s initial investigation suggests an attacker gained access through a compromised laptop belonging to an engineer, allowing unauthorized withdrawal transactions to be submitted. Binance said it found no evidence that wallet private keys were leaked.
The exchange said it is working with law enforcement and blockchain intelligence partners to trace and recover the funds, and will publish a technical post-mortem once its investigation is complete.
