Binance, the world’s largest cryptocurrency exchange, reported a hack of its platform amounting to $6.3 billion lost in digital assets. While the full extent of the damage isn’t fully known, it is considered to likely be the single biggest theft of its kind.
“This was not carried out by one person. Our initial investigation suggested that the security incident may have involved a compromised laptop, however our subsequent investigation has uncovered additional points of breach,” announced Binance co-CEO Richard Teng on X/Twitter.
“This was a complex attack. The attacker also used a self-destruct mechanism that destroyed tooling and traces as they went, making it more difficult for us to trace and investigate,” Teng continued.
Despite its apparent complexity, the attack and withdrawal of funds is estimated to have occurred over twenty minutes.
Authorities, including the U.S. Secret Service, are investigating the hack. At present, roughly $3 billion in the stolen funds have been frozen but not recovered.
Blockchain analysts suggest that the theft was conducted by TraderTraitor, a state-sponsored North Korean hacking team specializing in stealing digital assets. North Korea has been linked to similar activity since 2017 with the aim of funding its military in general and its nuclear program in particular.
Binance has attempted to reassure its customers that their funds remain safe.
“We NEVER use any customer funds, so they are not impacted,” said Teng.”[W]e are able to absorb a loss of this size, immediately, with our own money.”
What Binance account holders can do in the meantime:
Binance has placed a temporary pause on deposits and withdrawals while their investigation is underway. Account holders are encouraged to review their account status through Binance’s official website or mobile app.
Once normal activity resumes, they should check their transaction histories and look for anything suspicious and out of the ordinary, and to consider transferring their funds into hardware-based wallets.
Account holders should also be on the lookout for phishing emails or texts claiming to be from Binance with promises to help recover compromised funds.
UPDATE: Binance has restored the ability for members to deposit and withdraw funds. As of this writing, Binance’s customers have withdrawn a net $4.72 billion.
