Binance Crypto Exchange Suspends Trades Following Major Hack

Blockchain analysts reported that more than $6 billion was stolen from Binance, the world's largest cryptocurrency exchange, in an incident linked by experts to North Korea. In response to the security breach, Binance temporarily suspended deposits and withdrawals for security checks.

According to US-based blockchain intelligence firm TRM, approximately $6.36 billion was moved out of Binance wallets across 10 blockchains, mostly within a 20-minute window. TRM published a report on Thursday attributing the attack with high confidence to TraderTraitor, an elite North Korean hacking unit. Jonathan Levin, co-founder and CEO of Chainalysis, also stated that the attack was likely carried out by the same group. Experts noted that North Korea has historically used cyber thefts to fund its nuclear program despite international sanctions.

Binance Response and Asset Recovery

Binance did not independently confirm North Korea's involvement, stating it was working closely with law enforcement partners to identify the culprits. Co-founder Yi He announced that Binance will cover all hacking losses, while a company spokesperson assured users that their funds are completely safe.

• Frozen Assets: Binance stated it located and frozen about $3 billion in affected assets.
• Stablecoin Freezes: Tether CEO Paolo Ardoino reported that approximately $1.6 billion in USDT was frozen, and Circle boss Jeremy Allaire stated that about $800 million in USDC was frozen.
• Unaccounted Funds: Information regarding the remaining $3.3 billion has not yet been detailed by the exchange.

Investigation and Market Impact

Binance's initial investigation suggested that an attacker compromised a software infrastructure engineer's laptop, gaining access to an internal service to submit unauthorized withdrawals. The company stated there was no evidence that wallet private keys had leaked.

The news affected broader markets, causing Bitcoin's value to drop by 3.2% on Thursday evening to fall below $79,000.

• Verification: Users can verify official updates directly through Binance's official communication channels and announcements from regulatory or law enforcement bodies.
• Practical Implications: Customers should monitor platform notifications regarding the restoration of deposit and withdrawal services.