Crypto & Finance · VIDEO
Binance hack: $6.4 billion stolen, the largest heist in crypto history
On October 29, 2026, an unprecedented attack hit Binance, resulting in a $6.4 billion theft. Chainalysis attributes the responsibility to the North Korean group TraderTraitor. Despite the quick freezing of $2.8 billion, automated money laundering methods complicate the recovery of the funds.
KEY TAKEAWAYS
- The theft of $6.4 billion from Binance is the largest in cryptocurrency history, attributed to the North Korean group TraderTraitor.
- Chainalysis detected mixing between the funds stolen from Binance and those from the recent Bitget heist, both linked to North Korea.
- The attacker converted $325 million in stablecoin into $285 million in ETH to avoid freezing, but $2.8 billion was frozen by 5:14 p.m. ET.
- Money laundering patterns suggest the use of automation to obscure the tracking of funds, with thousands of transactions in a short time.
Transcript
"In a unprecedented attack, the cryptocurrency exchange Binance fell victim to the largest heist in crypto history today. At 16:20 Eastern Time, $6.4 billion was stolen from Binance's hot wallets across various blockchains. The theft was attributed to the North Korean cybercriminal group TraderTraitor.
The attack began with unauthorized transfers from Binance's Ethereum hot wallets. Investigators discovered that the attacker used an operational wallet funded through Tornado Cash to send valid signed authorizations, enabling the transfer of assets to addresses controlled by the attacker. In less than 20 minutes, $325 million in stablecoins were converted into $285 million in ETH to avoid freezing. However, at 17:14 Eastern Time, freezing began, blocking approximately $2.8 billion of the stolen funds.
Chainalysis, law enforcement, stablecoin issuers, and other industry actors worked in parallel to freeze the stolen funds. The speed of the response demonstrated the sector's ability to act effectively in crisis situations.
Evidence linking the attack to TraderTraitor emerged from laundering patterns. Funds stolen from Binance were mixed with those stolen in a previous attack on Bitget, also attributed to North Korean actors. Investigators observed automated laundering techniques, with thousands of transactions in a short period, suggesting the use of automation to obscure the trail of the funds.
The attack caused an immediate reaction in the cryptocurrency market. Bitcoin fell by 7.3% and Ethereum by 6.8% in the hours following the attack. Cryptocurrency exchanges saw a 30% increase in trading volumes, with many users moving their assets to institutional custody solutions for greater security.
This event underscores the need for exchanges to implement advanced security measures and incident response protocols. The cryptocurrency community must remain vigilant and prepared to respond quickly to such threats. The future of cryptocurrency security is likely to see a significant increase in security investments, with technologies such as zero-trust architecture and identity access management becoming standards for exchanges and crypto wealth management services."
