Crypto & Finance · VIDEO
Binance hack: $6.3 billion stolen, here's how it happened
The largest cryptocurrency heist in history struck Binance with a haul of $6.3 billion. The attack, attributed to a group linked to North Korea, involved technological vulnerabilities and security procedures. Here's what happened and the implications for the market.
KEY TAKEAWAYS
- Hackers stole 6.3 billion dollars from Binance, the largest cryptocurrency heist ever recorded.
- TRM Labs traced the illegal transfers starting at 20:05 UTC on Thursday, with attacks on multiple blockchains.
- Binance has reserved over 6.34 billion dollars to cover the losses, but independent verification of the resources is complex.
- The Ethereum update EIP-7702 is under investigation for its possible role in the attack.
- Binance aims to reopen withdrawals starting Sunday, November 1st, after security checks.
Transcript
Hackers have stolen approximately $6.3 billion from Binance in the largest cryptocurrency heist in history. The attack, which is still under investigation, targeted Binance's hot wallets across multiple blockchains. TRM Labs traced the first unauthorized transfers at 20:05 UTC on Thursday. Binance has allocated $6.34 billion to cover the losses, with $1 billion in assets already held and the rest being purchased through exchanges and over-the-counter transactions.
The FBI has linked the attack to the North Korean group TraderTraitor, responsible for a $1.5 billion heist from Bybit in February 2025. The Ethereum EIP-7702 update may have facilitated the attack by allowing compromised signing systems to bypass Binance's standard approval controls.
Chainalysis observed thousands of rapid, sequential transactions, indicative of possible automated money laundering. Funds were transferred between various addresses, suggesting an attempt to obscure the origin and destination of the stolen funds.
The theft triggered a wave of volatility in cryptocurrency prices and prompted the decentralized lender Aave to temporarily freeze new deposits and loans. Binance has suspended withdrawals pending security checks and plans to resume them in phases starting Sunday, November 1.
Binance has promised to share further technical findings within 48 hours and intends to take an initial snapshot of the proof-of-reserves within 12 hours of the announcement. This report aims to demonstrate the soundness of the assets held by Binance and the coverage of customer balances.
The incident underscores the importance of robust crypto AML compliance and advanced security measures for platforms handling large volumes of digital assets. It also highlights the need for secure institutional crypto custody solutions and strong digital operational resilience.
Legal experts predict particular attention to crypto AML compliance and KYC exchange protocols adopted by Binance, especially in Europe where the MiCA regulation is being implemented. The event serves as a warning for the entire cryptocurrency sector, emphasizing the need for constant vigilance and continuous investment in cyber insurance and incident response.
