Key Takeaways
- • Binance suffered a hack of roughly $6.3 billion, described by Reuters as a record and by analysts at Elliptic as almost certainly the single-largest known theft of any kind.
- • Binance said it will cover all losses from company funds, having set aside around $6.34 billion internally, and targets resuming withdrawals within approximately 34 hours.
- • About $3 billion of the affected assets had been located and was being frozen, with Tether reporting roughly $1.57 billion frozen and Circle more than $800 million; the status of the remaining $3.3 billion was not disclosed.
- • Analysts attributed the attack to North Korea, citing similarities to the 2025 Bybit heist, though North Korea denies involvement.
- • Crypto prices fell, with bitcoin hitting a six-week low of $76,368 and ether a two-month low of $2,178, while shares of Coinbase, Strategy and Robinhood slid.
Summary
Binance, the world's largest cryptocurrency exchange, worked on Friday to restore public confidence after a record $6.3 billion hack of its platform, according to Reuters. The company said it will cover all losses from company funds and will allow clients to trade again within days. Binance said customer funds were safe and that it is working with industry partners to freeze affected assets, with about $3 billion located so far. Co-CEO Yi He said on X that this represented only about 2% of the company's total user assets and public reserves. Binance also said it is conducting a full security review and plans an initial proof-of-reserves snapshot within 12 hours, with results expected by Monday. Founder Changpeng Zhao said the company owned SpaceX shares worth more than $1 billion, and Binance maintains a $1 billion bitcoin reserve fund designed to protect customer assets in security breaches, according to its website.
Co-CEO Richard Teng described the breach as a "complex attack" involving a compromised laptop and malicious software designed to delete evidence. He said hackers manipulated a system used to approve transactions, moving money out of an internet-connected hot wallet without passing normal approval controls. Per TRM Labs, the bulk of the theft unfolded in roughly 20 minutes beginning late Thursday and mirrored a 2025 heist at Bybit, which the FBI attributed to North Korea. Chainalysis reported similar patterns. North Korea denies involvement.
The incident adds to a string of crypto thefts; TRM Labs reported that attackers stole $2.9 billion across nearly 150 attacks last year. Binance is working with the FBI and the US Secret Service, and the FBI said it is engaged with public and private partners. US President Donald Trump said his administration is looking into the matter. Abu Dhabi's Financial Services Regulatory Authority, which issued Binance's main operating license, said it is engaging closely with Binance. Crypto markets fell broadly, though losses were contained, with BNB down about 6.4% over 24 hours.
Analysts said the breach could further dampen risk appetite and prompt investors to reassess the safety of assets held on centralized exchanges, according to Tim Sun of HashKey Group. Binance has 335 million registered users and had about $162.8 billion in assets under custody as of its 2025 annual report. Bitwise CIO Matt Hougan noted that historically, large hot wallet hacks have not had a meaningful impact on future crypto returns.
Co-CEO Richard Teng described the breach as a "complex attack" involving a compromised laptop and malicious software designed to delete evidence. He said hackers manipulated a system used to approve transactions, moving money out of an internet-connected hot wallet without passing normal approval controls. Per TRM Labs, the bulk of the theft unfolded in roughly 20 minutes beginning late Thursday and mirrored a 2025 heist at Bybit, which the FBI attributed to North Korea. Chainalysis reported similar patterns. North Korea denies involvement.
The incident adds to a string of crypto thefts; TRM Labs reported that attackers stole $2.9 billion across nearly 150 attacks last year. Binance is working with the FBI and the US Secret Service, and the FBI said it is engaged with public and private partners. US President Donald Trump said his administration is looking into the matter. Abu Dhabi's Financial Services Regulatory Authority, which issued Binance's main operating license, said it is engaging closely with Binance. Crypto markets fell broadly, though losses were contained, with BNB down about 6.4% over 24 hours.
Analysts said the breach could further dampen risk appetite and prompt investors to reassess the safety of assets held on centralized exchanges, according to Tim Sun of HashKey Group. Binance has 335 million registered users and had about $162.8 billion in assets under custody as of its 2025 annual report. Bitwise CIO Matt Hougan noted that historically, large hot wallet hacks have not had a meaningful impact on future crypto returns.
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