CoinEx Founder Criticizes Binance Over $6.3 Billion Security Breach

Yang identified three specific vulnerabilities he believes enabled the breach. He first pointed to a lack of environment isolation, noting that employees with production access should operate from dedicated, secure hardware free from third-party software. He further criticized Binance’s authentication controls, claiming that a single stolen credential could grant unauthorized access to sensitive services without sufficient secondary verification. Finally, Yang argued that the exchange’s multi-party computation setup functioned effectively as a single-signature system because individual participants failed to independently verify the transactions they approved.

Binance’s internal report, released on November 3, confirmed that the breach originated from a months-long campaign involving compromised employee devices and fraudulent recruitment. Attackers leveraged malicious software to gain access to wallet infrastructure, eventually deploying code that enabled unauthorized withdrawals. While Binance co-CEO Richard Teng stated that 98% of affected assets have been replenished, the company faces ongoing pressure to overhaul its internal security architecture. Co-CEO Yi He noted that the exchange successfully blocked 57 other North Korea-linked threats throughout 2026, underscoring the persistent nature of these attacks. Binance has committed to an independent cybersecurity review and expanded monitoring, though some defensive measures remain confidential.