A reported $6.3 billion hack involving Binance has raised serious security concerns across the cryptocurrency industry. Rival exchanges are reviewing their defences and calling for stronger cooperation to tackle growing cyber threats.

Coinbase said it had adjusted the systems used to store cryptocurrency keys offline. The company stressed that it made the changes “solely out of an abundance of caution”.

Kraken said it was monitoring security incidents across the industry. The exchange aims to identify lessons that could help strengthen its own systems.

The incident has highlighted the risks facing a sector that is becoming increasingly connected to mainstream finance. Analysts and executives say exchanges must address security weaknesses before further attacks occur.

The issue has gained urgency as US President Donald Trump’s regulators push for deeper integration of digital assets into the financial system. Greater integration could increase the potential impact of security breaches.

“For crypto to reach its full potential, the security situation must be addressed immediately,” said Chris Perkins, Franklin Templeton’s head of crypto.

Binance Halts Withdrawals After Attack

Binance, the world’s largest cryptocurrency exchange, halted withdrawals following Thursday’s attack. Analysts attributed the breach to North Korea, although the country has denied involvement in similar thefts.

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Binance said it would use company funds to cover the losses.

Co-CEO Richard Teng said on X that the “complex attack” may have started with a software engineer’s compromised laptop. The breach allegedly gave hackers access to systems used to process withdrawals.

The company later discovered additional security breaches. Software designed to erase traces of the attack also complicated the investigation, according to Teng.

Rival exchanges moved quickly on Friday to review their systems and reassure customers that their assets remained safe.

“Full-time teams at Kraken look for potential vulnerabilities every day,” a Kraken spokesperson said.

Despite the scale of the incident, industry executives expressed confidence that Binance had enough resources to absorb the losses. They also said the breach was unlikely to trigger wider financial damage.

“Our expectation is the industry writ large will actually not suffer material losses, even though Binance is obviously going to have to deal with the exploit directly,” said Josh Riezman, chief legal and strategy officer at crypto firm GSR.

Bitcoin and Ether Recover Some Losses

The attack triggered a decline in major cryptocurrencies. Bitcoin fell more than 4% on Thursday, while Ether, the second-largest cryptocurrency, dropped more than 5%.

Both assets recovered some of their losses on Friday.

The bulk of the theft reportedly took place within around 20 minutes late on Thursday. US blockchain analysis firms TRM Labs and Chainalysis said the attack showed similarities to previous incidents attributed to North Korea.

North Korea routinely denies involvement in cryptocurrency thefts. Its mission in Geneva did not respond to requests for comment.

Social Engineering and Money Laundering Suspected

Investigators have yet to establish the full details of the breach. However, security experts said social engineering may have played a role in compromising the engineer’s laptop.

Social engineering involves tricking people into revealing sensitive information or granting unauthorised access to systems.

Harry Donnelly, CEO of crypto risk infrastructure company Circuit, said firms were planning additional employee training to reduce the risk of such attacks.

Hackers often try to move stolen funds before exchanges detect the breach and token issuers freeze the assets.

Stablecoin issuer Tether said it had frozen nearly $1.57 billion linked to Binance. Circle reported freezing another $800 million.

Bitcoin and Ether cannot be frozen by a single company because no central authority controls those cryptocurrencies.

Chainalysis said the hackers appeared to be using sophisticated money-laundering methods that the firm had not previously observed.

Crypto Leaders Call for Joint Security Response

The breach has renewed calls for a coordinated security response across the cryptocurrency industry.

On Friday, several exchange executives called for a system that would allow companies to share information about attacks in real time.

“We need a real-time alert system that allows participants to share information immediately when a hack occurs, coordinate a rapid response, and temporarily freeze suspected stolen funds,” said Star Xu, CEO of crypto exchange OKX, in a post on X.

GSR’s Riezman said the incident could encourage greater cooperation as traditional finance and digital assets become more closely connected.

He described the attack as a potential catalyst for improving security across the sector.

The incident has placed renewed pressure on cryptocurrency exchanges to strengthen internal controls, improve employee awareness and coordinate responses to cyberattacks.