By Salma El-Sakka
Hackers stole $6.3 billion from Binance, the world's largest cryptocurrency exchange, in a record-breaking digital asset theft that unfolded in approximately 20 minutes on Thursday evening.
Attack Details
The breach began shortly after 20:00 GMT when attackers compromised Binance's signing infrastructure, the system that authorizes transactions. According to blockchain analytics firm TRM Labs, this allowed the hackers to issue instructions that emptied the affected wallets. Binance initially believed a compromised laptop was the entry point but later uncovered additional breach points.
Response and Recovery
Binance co-CEO Richard Teng said the exchange's secure asset fund for users, a $1 billion bitcoin reserve, along with company resources, would cover all losses. Stablecoin issuers including Tether, Circle, Ripple, and World Liberty Financial froze roughly half of the stolen assets, significantly limiting the attackers' ability to convert them into cash. However, TRM Labs estimated about $2.4 billion in bitcoin and ether remains beyond reach, as no central authority can freeze those cryptocurrencies.
Attribution and Investigation
Several U.S. blockchain analysis firms said the attack bears similarities to operations attributed to North Korean hackers, including last year's Bybit breach that the FBI linked to North Korea. TRM Labs expressed high confidence the same group was responsible. Chainalysis also reported that funds from a recent Bitget hack were being mixed with proceeds from the Binance theft. North Korea routinely denies involvement in cyberattacks, and its diplomatic missions did not respond to comment requests.
Market Impact
The theft rattled confidence in the digital asset sector. Cryptocurrency prices fell on Friday and the total market value of stablecoins declined, suggesting investors were pulling money from digital assets. TRM Labs reported that attackers stole $2.9 billion across nearly 150 incidents last year, highlighting a growing trend of major digital asset breaches.
