Key Takeaways
- • Binance began a phased reopening of customer withdrawals on Sunday after a record $6.3bn (£4.7bn) hack that the exchange said occurred on Thursday, with ethereum, USDT and USDC on the Ethereum network and some BNB Smart Chain assets withdrawable first.
- • The FBI attributed the theft to North Korea-affiliated group TraderTraitor, which is believed to be part of the Lazarus Group, and said the stolen assets were being converted into ethereum for further laundering.
- • Binance said it set aside about $6.34bn of company funds to cover losses and has replenished 90% of the stolen amount, with the remaining 10% held in less liquid tokens.
- • Binance co-CEO Richard Teng said users would not bear the financial impact of the hack, which he described as a complex attack involving a compromised laptop and malware designed to delete evidence.
- • Bitcoin fell nearly 5%, ethereum nearly 6% and BNB nearly 10% following news of the hack.
Summary
The cryptocurrency exchange Binance has started allowing customers to withdraw funds from its platform as it recovers from a record $6.3bn (£4.7bn) hack, according to The Guardian. The theft occurred on Thursday and has been described as the biggest heist in history. Binance initially froze withdrawals while it investigated the breach, then announced on Sunday that it had begun a phased reopening after 2pm Singapore time. In the first phase, users holding ethereum, USDT and USDC on the Ethereum blockchain could withdraw, along with some assets on the BNB Smart Chain. Dogecoin and Avalanche trading later resumed on their own platforms.
Binance said it had replenished 90% of the amount stolen, while the remaining 10% consists of less liquid tokens that may take longer to purchase. Co-chief executive Richard Teng said the company was "committed to covering the remaining 10%" and that users would not bear the financial impact. Binance said it had set aside about $6.34bn of company funds. According to the company, the rebuying of tokens drew on part of its $1bn secure asset fund, a bitcoin reserve held to protect customers in security breaches, as well as portions of its futures insurance fund and corporate treasury.
On Saturday, the FBI said North Korea was responsible for the theft of more than $6bn in virtual assets on or about October 29, and identified the actors as TraderTraitor, believed to be part of the Lazarus Group. The agency said it had observed the actors converting stolen assets into ethereum and expected further laundering through decentralised finance and instant swap services. It urged private sector entities to block transactions with addresses used to launder the assets. Teng described the breach as a complex attack involving a compromised laptop and malicious software designed to delete evidence of activity.
The hack triggered market declines, with bitcoin falling nearly 5%, ethereum nearly 6% and BNB, Binance's native token, tumbling nearly 10%. The incident has also drawn attention to concerns among observers that advances in artificial intelligence could compromise cryptography and IT security protocols. The scale of the theft highlights North Korea's capacity to generate revenue through illicit means despite extensive international sanctions over its nuclear and missile programmes.
Binance said it had replenished 90% of the amount stolen, while the remaining 10% consists of less liquid tokens that may take longer to purchase. Co-chief executive Richard Teng said the company was "committed to covering the remaining 10%" and that users would not bear the financial impact. Binance said it had set aside about $6.34bn of company funds. According to the company, the rebuying of tokens drew on part of its $1bn secure asset fund, a bitcoin reserve held to protect customers in security breaches, as well as portions of its futures insurance fund and corporate treasury.
On Saturday, the FBI said North Korea was responsible for the theft of more than $6bn in virtual assets on or about October 29, and identified the actors as TraderTraitor, believed to be part of the Lazarus Group. The agency said it had observed the actors converting stolen assets into ethereum and expected further laundering through decentralised finance and instant swap services. It urged private sector entities to block transactions with addresses used to launder the assets. Teng described the breach as a complex attack involving a compromised laptop and malicious software designed to delete evidence of activity.
The hack triggered market declines, with bitcoin falling nearly 5%, ethereum nearly 6% and BNB, Binance's native token, tumbling nearly 10%. The incident has also drawn attention to concerns among observers that advances in artificial intelligence could compromise cryptography and IT security protocols. The scale of the theft highlights North Korea's capacity to generate revenue through illicit means despite extensive international sanctions over its nuclear and missile programmes.
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