Binance resumes withdrawals after recovering 95% of stolen crypto assets

The world's largest cryptocurrency exchange, Binance, has reinstated withdrawals following the recovery of approximately 95% of the $6.3 billion stolen in a significant hack earlier this year. On Sunday, Binance announced the resumption of withdrawals, recovering about 95% of the $6.3 billion in digital assets taken from its platform. This theft, the largest globally, has been attributed by the US Federal Bureau of Investigation to North Korea-linked cybercriminals.

Binance detailed that the initial withdrawal phase will focus on 15 cryptocurrencies, including Bitcoin, Ethereum, XRP, and Dogecoin. The company compensated for roughly $6 billion of the stolen assets by using its own funds to purchase alternative coins, replacing the lost assets. The remaining 5% of stolen assets, which are less liquid, are expected to take longer to recover in sufficient quantities.

This incident highlights the prevalence of cryptocurrency thefts in the sector, with TRM Labs reporting that hackers stole $2.9 billion worth of cryptocurrencies last year across 150 separate attacks.

According to the US Federal Bureau of Investigation, North Korea's state-backed Trader Traitor unit was responsible for the attack. Pyongyang has consistently denied involvement in state-linked cyber activities, including espionage, financial theft, and revenue generation. The FBI noted that law enforcement agencies traced the hackers converting stolen assets into Ethereum, and anticipate further laundering attempts using similar techniques.

While the United States had not confirmed North Korean involvement, US President Donald Trump commented that the country would discuss the matter if the allegations were true.

Binance is collaborating with partners in the cryptocurrency industry to freeze affected assets, with around $3 billion in assets identified as of Friday. The platform has committed to bearing the financial impact of the stolen funds, allocating around $6.34 billion of company funds to cover the losses. These funds were sourced from Binance's $1 billion Secure Asset Fund for Users, which includes a Bitcoin reserve to protect customers during security breaches, as well as its futures insurance fund and company treasury.

Binance, founded in China, hosts approximately 335 million registered users worldwide, and had $162.8 billion in assets under management as of last year's annual report.