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View all search resultsAnalysis: Beyond Binance: Is Indonesia Prepared for Crypto Risks?
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Binance logo and hacker code are seen in this illustration taken on Oct. 30, 2026. (Reuters/Dado Ruvic)
T
he global cybersecurity breach at Binance, the world's largest cryptocurrency exchange, has renewed scrutiny of the security risks facing digital asset platforms, particularly in Indonesia given Binance's position as a majority shareholder in local exchange Tokocrypto. Shortly before the Binance breach, Tokocrypto experienced a separate security incident in which fraudulent notifications were distributed through a third-party service connected to its application, exposing users to potential phishing attempts and raising questions about the operational safeguards protecting Indonesia's cryptocurrency market.
The direct impact of the Binance breach on Indonesia's domestic crypto market has so far been limited, partly because cryptocurrency is not recognised as a legal means of payment in the country. Bank Indonesia (BI) prohibits the use of cryptocurrencies as payment instruments, while the Financial Services Authority (OJK) regulates them as tradable financial assets. However, these restrictions do not prevent Indonesian residents from holding assets or maintaining accounts on offshore platforms such as Binance, leaving some investors potentially exposed to security incidents beyond the reach of domestic regulators.
The large majority of Indonesia’s crypto exchange is handled through Tokocrypto, which is one of Indonesia’s largest crypto platforms. Prior to the Binance breach, on Oct. 27, some users of Tokocrypto received fraudulent notifications titled "Account Security Verification Notice", containing links to external websites that prompted them to withdraw their crypto assets. Tokocrypto subsequently confirmed that the notifications had been distributed through a third-party service connected to its application, rather than through its official communication channels.The exchange blocked access to the affected services and said it had detected no unauthorised asset withdrawals related to the incident as of 5.30 p.m. local time that day.
Nonetheless, the incident exposed a more concerning vulnerability in Tokocrypto's security infrastructure, as fraudulent messages were distributed through the exchange's own application rather than external phishing channels. This meant that malicious actors were able to reach users through a communication channel they would ordinarily consider trustworthy, potentially increasing the likelihood of successful phishing attempts. Although Tokocrypto reported no unauthorized withdrawals, the incident raised questions over the security of its third-party service providers and the safeguards protecting customer communications.
Cybersecurity breaches have become a recurring threat to the cryptocurrency industry, with exchanges and digital asset platforms repeatedly targeted by malicious actors seeking to steal customer funds. In February 2025, cryptocurrency exchange Bybit suffered one of the largest thefts in the industry's history after hackers stole approximately US$1.5 billion in digital assets from one of its Ethereum cold wallets. The scale of the incident reflected a broader pattern of attacks against cryptocurrency services. By July 2025, blockchain analytics firm Chainalysis estimated that more than US$2.17 billion had already been stolen from such services that year, surpassing the total recorded throughout 2024.
Unlike conventional banking, where financial institutions act as intermediaries that authorise and oversee transactions, cryptocurrency transfers can take place directly between digital wallets without requiring approval from a central authority. Transactions are authorised using cryptographic private keys, which effectively grant their holders control over the associated assets. Once a transaction has been validated and sufficiently confirmed on the blockchain, it is generally irreversible, leaving no central institution capable of unilaterally cancelling the transfer or restoring the original balance. The speed of these transactions varies depending on the blockchain network, but some can be processed within seconds, leaving a limited window for intervention once a wallet has been compromised.
This decentralised structure also makes cryptocurrency wallets particularly attractive targets for cybercriminals. Unlike conventional bank accounts, self-custodied wallets do not inherently have transaction limits, automated fraud monitoring or additional authentication requirements imposed by a financial intermediary. An attacker who obtains a wallet's private keys can therefore initiate transfers directly, potentially moving substantial amounts of assets before the legitimate owner can respond. The risks are particularly pronounced for cryptocurrency exchanges, whose online hot wallets may hold pooled assets belonging to thousands of customers. Compromising a single wallet can consequently expose a substantial amount of customer funds to theft.
