‘Largest Crypto Hack in History’: Binance Loses More Than $6B
It’s a bad week to own crypto.
A recent cyberattack on the popular cryptocurrency exchange Binance resulted in losses exceeding $6 billion, marking it as one of the largest thefts in cryptocurrency history. The hackers reportedly gained access to Binance's servers using an employee's laptop. Binance confirmed it would cover all losses for affected traders using its secured reserves and funds. The company has temporarily suspended all withdrawals.
Crypto markets are decentralized and not insured by the Federal Deposit Insurance Corporation, unlike traditional banking systems. Binance has committed to covering traders' losses, with $5 billion set aside in token assets and the remainder to be purchased through other market channels. This approach aims to match the format of the stolen assets and address any shortfalls.
Blockchain research firm TRM and Chainalysis attribute the breach to a North Korean group known as TraderTraitor. However, Binance and law enforcement officials have not confirmed this attribution. The FBI is aware of the incident and is coordinating with relevant partners to assess the scope of the activity, evaluate potential impacts, and coordinate investigative steps.
Written by urgent.news from CNET's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
