How Binance’s $6.3 billion hack went down

On Thursday afternoon, Binance, the world's largest cryptocurrency exchange, experienced an alarming flurry of transactions that raised red flags. Money was swiftly withdrawn from the company's accounts, amounting to over $6 billion, in what appeared to be a sophisticated cyberheist. As the news spread, Binance's executives convened an ad-hoc crisis team on WeChat, the company's internal communication platform, with around 100 members including specialized crypto investigators and security personnel.

The team's leader, Binance's co-CEO He Yi, who was seven months pregnant and based in Abu Dhabi, worked through the night to manage the crisis. Meanwhile, Binance's founder and CEO Changpeng Zhao, one of the most prominent figures in the crypto industry, kept his 12.9 million followers informed on X, posting cryptic messages and seeking reassurance.

Zhao's company had already faced significant penalties for money laundering violations, but this incident could prove to be its most damaging crisis yet. The perpetrators were believed to be North Korean hackers, who had infiltrated Binance and successfully siphoned off more than $6 billion. Despite the severity of the attack, Binance's response was swift.

The exchange halted deposits and withdrawals, and Zhao assured customers that their funds were secure. Law enforcement agencies worldwide joined the investigation, and major exchanges like Tether and Circle froze billions of dollars in seized crypto, hoping to disrupt the laundering process. The incident sent shockwaves through the crypto industry, prompting an urgent need to improve cybersecurity measures and protect customers' assets.