Binance says 90% of losses from $6.3bn hack covered as FBI says North Korea behind attack

Cryptocurrency firm Binance claims 90% of funds stolen in a $6.3 billion hack have been replaced, while the FBI has attributed the attack to a North Korean state-sponsored group known as TraderTraitor. The remaining 10% of tokens, which are less liquid, may take longer to acquire, according to a statement from Binance on X. Co-CEO Richard Teng affirmed that Binance is committed to covering the remaining 10% and assured users that the financial impact of this incident will not be borne by them.

The exchange temporarily halted user withdrawals following the hack, but stated it expects to resume them by Sunday. The FBI confirmed on Saturday, based on previous suspicions by private investigators and analysts, that TraderTraitor, part of the Lazarus Group, was responsible for the breach. TraderTraitor is believed to have converted stolen assets into Ethereum, with plans to further launder these funds using decentralized finance and instant swap services.

The FBI has urged private sector entities to block transactions with or derived from addresses associated with TraderTraitor actors. Binance had set aside approximately $6.34 billion to cover the losses, utilizing funds from its $1 billion Secure Asset Fund for Users, the Futures Insurance Fund, as well as its corporate treasury.

The attack on Binance occurred at a time when many are concerned about the potential for artificial intelligence to undermine cryptography and IT security protocols. Following the news of the hack, both Bitcoin and Ethereum experienced significant drops in value, with Bitcoin falling nearly 5% and Ethereum nearly 6%, while BNB, the native token of Binance, declined by nearly 10%.