Binance, the world’s largest crypto exchange by daily trading volumes, has resumed withdrawals after a major hack resulted in the theft of over $6 billion in virtual assets. The company said it had seen withdrawals of around $4.7 billion on Sunday.
The hack, which is thought to be the biggest-ever crypto heist, caused the prices of most major cryptocurrencies to fall sharply on Friday. Bitcoin plunged nearly five percent, while Ethereum dropped nearly six percent and BNB, native to Binance, tumbled nearly 10 percent.
Hack Details
The FBI formally blamed North Korea for the attack in a Saturday announcement, validating prior claims by cybersecurity experts that a state-backed hacking collective, dubbed TraderTraitor, was the culprit. This same group had previously been linked to a $1.5 billion theft from Bybit earlier this year.
According to the FBI, the hackers behind the attack are already moving stolen funds into Ethereum and plan to obscure their trail using decentralized finance tools and rapid exchange services. The bureau warned financial institutions to monitor and block any transactions linked to the group’s known money-laundering addresses.
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Response to the Hack
After halting withdrawals following the breach, Binance gradually restored access, with the first phase running from 0600 to 1530 GMT on Sunday. During that window, the platform handled $4.65 billion in withdrawals and $1.01 billion in deposits, resulting in a net outflow of $3.64 billion, roughly 2.1 percent of its total managed assets.
Binance has pledged to absorb the financial hit, stating it will use internal reserves to replace 90 percent of the stolen funds by purchasing tokens. The company announced Saturday it has allocated over $6.34 billion to cover the losses from the hack.
As the investigation into the hack continues, some observers have noted that the attack may be a sign of the increasing capabilities of malicious actors, including those affiliated with nation-states. The fact that a group like TraderTraitor, which is believed to be part of the Lazarus Group, was able to carry out such a large-scale hack may indicate a growing threat to the security of cryptocurrency exchanges.
Former US President Donald Trump questioned North Korea’s role in the attack, telling reporters, “I’m not concerned. We’re learning about it. We don’t know if it’s North Korea.” He has previously spoken fondly of his diplomatic meetings with North Korean leader Kim Jong Un during his presidency.
