Analysts say that the signature system limit may restrict Binance's losses

The $6.3 billion security incident at the cryptocurrency exchange Binance involves affected assets with a cumulative value across 10 blockchains. CertiK analyst Jonathan Riss stated that public blockchain records show a hot wallet on Ethereum was repeatedly emptied by attackers after new deposits arrived; on-chain records cannot reveal Binance's internal signature controls and transfer limits.

Jonathan Riss pointed out that if the limits are executed by the application that initiated the signature request, those limits may be bypassed if the application is compromised; limits executed independently by the signature system may restrict transfers. Binance previously stated that attackers transferred funds out of the regular withdrawal process through an internal wallet signature service.

Idan Ofrat, co-founder and Chief Product Officer of the crypto asset custody company Fireblocks, stated that exchange hot wallets typically hold enough funds to cover expected withdrawals for a few days, often representing a low single-digit percentage of managed assets. Alex Tobol, Chief Technology Officer of Walt, stated that replenishing funds from cold wallets to hot wallets should require separate fund management decisions and manual approvals.