Binance hit in $6.3 billion hack as bitcoin and ether tumble
Binance just suffered a massive $6.3 billion cyber attack.
The short version
- The exchange says it will cover all losses from its own funds.
- Investigators link the massive breach to a North Korean hacking group.
- About $3 billion in stolen crypto has already been frozen.
Check your crypto accounts this morning. Binance, the world's biggest cryptocurrency exchange, just suffered a staggering $6.3 billion cyber attack that sent bitcoin and ether tumbling across global markets. The breach, which unfolded across 10 blockchains in just 20 minutes, is being blamed on TraderTraitor, a North Korean state-sponsored hacking unit, according to TRM Labs, a blockchain intelligence firm.
Investigators say the attackers spent at least 36 hours preparing the heist, using a mixing service called Tornado Cash to fund their wallets ahead of the strike. Binance temporarily suspended deposits and withdrawals while investigating the incident. Sean Farrell, the head of digital asset strategy at Fundstrat Global Advisors, said the attack does not currently pose a significant solvency risk for the exchange.
Binance pledged to cover all losses out of pocket, leaning on its SAFU emergency fund, which holds approximately $1.2 billion, to help plug the gap. Ari Redbord, the global head of policy at TRM Labs and a former US federal prosecutor and Treasury official, explained that while stablecoins like USDT and USDC can be frozen and reissued by their issuers, recovering bitcoin and ether is much harder because they have no central issuer.
Eric Jardine, the head of research at blockchain analytics firm Chainalysis, warned that returning frozen funds through legal processes can take months or years. For now, market watchers are waiting to see how quickly Binance resumes normal withdrawals and whether customer outflows stay orderly. That is a very expensive lesson in digital locks.
