<br><div>Binance, the world's largest cryptocurrency exchange, has suffered a massive security breach, with approximately $6.3 billion in crypto assets reportedly affected.</div><div><br></div><div>The incident triggered an emergency response from major crypto companies. Tether froze over $1.5 billion in USDT, while Circle froze more than $800 million in USDC. Other industry players also joined the effort to contain the damage.</div><div><br></div><div>But here's where things get interesting.</div><div><br></div><div>Rather than simply holding all the stolen stablecoins, the attacker reportedly converted some into ETH and used some of the USDT as collateral on Aave to borrow Ethereum.</div><div><br></div><div>This allowed the attacker to move part of the funds into an asset that cannot simply be frozen by Tether or Circle.</div><div><br></div><div>Binance says it will cover the losses and that customer funds remain safe.</div><div><br></div><div>One of the biggest questions coming out of this incident is how a single security breach could trigger billions of dollars in losses and expose the limitations of centralized control in DeFi.</div><div><br></div><div>Crypto never stops teaching lessons.</div>