Binance partner reviews impact of $6.3 billion crypto hack

MANILA, Philippines — BlockShoals Technologies Inc., the Philippine partner of cryptocurrency exchange Binance, is assessing the possible impact of a $6.3-billion cyberattack on its local regulatory sandbox project as the global platform moves to replace stolen assets and restore withdrawals.

In a statement, Block-Shoals said it would coordinate with the Securities and Exchange Commission (SEC) to determine whether the security breach could affect its operations under the regulator’s Strategic Sandbox (StratBox) framework.

The StratBox allows financial technology firms to test innovative products and services in a controlled environment under SEC supervision, with safeguards intended to protect consumers and manage risks.

“As an approved participant in the SEC’s StratBox, BlockShoals remains focused on its own regulatory responsibilities, particularly the protection of users, operational security and compliance with applicable SEC requirements,” it said.

The statement followed a massive cyberattack on Binance on Oct. 30, when hackers compromised its hot wallets, or internet-connected digital wallets used to store and transfer cryptocurrencies.

Binance estimated that about $6.3 billion worth of digital assets were stolen, making it the largest reported cryptocurrency theft on record.

Initial investigations pointed to a compromised employee laptop that allowed unauthorized transactions.

Binance later said investigators uncovered additional security breaches, although there was no evidence that wallet private keys had been leaked.

In its latest update on Oct. 31, Binance said it had replenished 90 percent of the stolen assets, up from 80 percent previously.

The company has set aside more than $6.34 billion to cover the losses, drawing on corporate funds, insurance reserves and its Secure Asset Fund for Users, an emergency fund designed to protect customers during security incidents.

Binance temporarily suspended withdrawals while conducting security checks but said deposits remained operational. It was targeting a phased resumption of withdrawals on Nov. 1.

BlockShoals secured SEC approval in May to test its proposed crypto asset intermediary services under the StratBox framework.

Under its partnership with Binance, BlockShoals serves as the local intermediary responsible for regulatory compliance, while Binance provides technology infrastructure and operational support.

BlockShoals urged the public to rely on official Binance communications and remain vigilant against fraudulent messages or offers to recover stolen funds.