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

Cryptocurrency exchange Binance announced on Saturday that it has covered 90% of the losses incurred following a record $6.3bn hack of its platform. The remaining 10% of tokens are less liquid, potentially taking longer to purchase. Co-CEO Richard Teng stated that Binance is committed to covering the remaining 10% and assured users that they would not bear the financial impact of the incident.

The exchange suspended user withdrawals following the hack, but noted that some resumption has occurred and will be implemented in stages to ensure stability.

The FBI confirmed on Saturday that North Korea was responsible for the hack, identifying the group behind it as TraderTraitor. TraderTraitor is believed to be a part of the Lazarus Group, infamous for hacking Sony Pictures in 2014. The FBI warned that TraderTraitor actors have converted the stolen assets into Ethereum, with further laundering expected via decentralized finance and instant swap services.

The agency urged private sector entities to block transactions with or derived from addresses used by TraderTraitor actors to launder the stolen assets.

Binance's co-founder attributed the complex attack to a compromised laptop and malware designed to erase evidence of its activity, making it harder to trace. The company had allocated around $6.34bn of its funds to cover the losses, utilizing reserves from its Secure Asset Fund for Users, Futures Insurance Fund, and corporate treasury.

Binance's announcement followed a dip in Bitcoin, Ethereum, and BNB prices, with Bitcoin falling nearly 5%, Ethereum dropping nearly 6%, and BNB plunging nearly 10%. The hack has highlighted concerns about the potential vulnerabilities that AI models could pose to cryptography and IT security protocols.