Biggest crypto heist ever? Binance confirms RM26b customer funds hit in cyberattack

Binance, the world's largest cryptocurrency exchange, confirmed on Friday that it was battling a "complex attack" that resulted in around US$6.3 billion (RM25.7 billion) in customer funds being compromised, marking it as potentially the largest crypto heist ever documented. According to blockchain investigation firm TRM Labs, they were "highly confident" that the attack was orchestrated by a North Korea-affiliated group called TraderTraitor, a group blamed for a US$1.5 billion theft from platform Bybit in February last year. Elliptic, another analytics firm, also attributed the attack to North Korean hackers.

TraderTraitor is believed to be part of the Lazarus Group, notorious for hacking Sony Pictures in 2014 after the release of a film that mocked North Korean leader Kim Jong Un. Binance, following its initial investigation, uncovered "additional points of breach," contrary to earlier reports suggesting the hack involved a single compromised laptop. They stated that they were working in coordination with law enforcement to resolve the situation.

Binance revealed that around US$3 billion in affected assets had already been frozen, while they could not confirm if customer account balances had been affected, though withdrawals remained suspended. The company announced it was on track to resume withdrawals within 45 hours. President Donald Trump stated the United States was investigating the hack, and the FBI said it was engaging with relevant partners to understand the scope of the activity and would investigate.

Initial reports suggested the hack involved a compromised laptop belonging to a DevOps engineer. However, Binance later clarified it found no evidence of any private key leaks from wallets, promising a detailed technical analysis once investigations were complete. The unauthorized withdrawals drained Binance's hot wallets across several blockchains.

The freeze led to a significant drop in the prices of major cryptocurrencies, with Bitcoin plunging nearly five percent to around US$76,400, its lowest level since mid-September, before recovering to about US$77,300. Ethereum dropped nearly six percent, while BNB, native to Binance, dropped nearly 10 percent.