Binance resumes withdrawals after $6.34 billion crypto hack

Binance announced on Sunday the resumption of withdrawals following a massive hack that compromised over $6.34 billion in user funds. The world's largest cryptocurrency exchange by daily trading volume had previously suspended withdrawals in response to the attack. The initial phase of withdrawals, focusing on the BTC bitcoin network, began at 0600 GMT on Sunday.

Binance outlined a phased approach to restore services, prioritizing tokens based on user demand data from the previous week to ensure a safe and secure reactivation of each network and asset pair. The company disclosed that it had allocated over $6.34 billion in reserves to mitigate the financial impact of the hack, which is believed to be the largest-ever cryptocurrency heist.

Binance clarified that user funds remain secure and that it will bear the cost of the stolen assets, not its users. The Federal Bureau of Investigation (FBI) has identified North Korea as the suspected perpetrator, confirming earlier speculations by private investigators and analysts that the Pyongyang-affiliated group TraderTraitor was responsible for the breach.

This hack adds to a series of high-profile cyber thefts attributed to North Korea, demonstrating the group's advanced hacking capabilities that are reportedly funding its weapons program. The cyberattack led to a sharp decline in prices of major cryptocurrencies on Friday.