After $6.3b Binance hack, bitcoin rebounds to $78,600

In the aftermath of a record-breaking cryptocurrency hack, Binance users withdrew $3.64 billion in assets from the world's largest exchange on Sunday, following its reopening. The hack, which impacted $6.3 billion worth of digital assets, was widely attributed to North Korea's cybercrime group, known as the Lazarus Group or TraderTraitor. The US Federal Bureau of Investigation (FBI) has joined the investigation, urging the industry to freeze assets linked to the group.

Binance, which suspended all transactions during the incident, reported that it had covered approximately 95% of the stolen assets, but the remaining funds could take longer to recover. The exchange stated that it would bear the full financial responsibility for the losses linked to the attack. Over the course of the withdrawal period between 06:00 and 15:30 GMT on November 1, Binance processed $4.649 billion in withdrawals and $1.01 billion in deposits, resulting in a net outflow of approximately $3.64 billion.

Despite the significant impact, Binance noted that the net withdrawals represent just over 2% of its $171 billion in assets under management. The firm had previously reserved more than $6.34 billion to address the fallout from the attack. As of the report, withdrawals of various major cryptocurrencies like Bitcoin and Ethereum have resumed, with additional services expected to return in phases once security checks are completed.

The hack is believed to have originated from a compromised laptop belonging to an engineer, enabling hackers to make unauthorized transactions. Binance also shared a list of cryptocurrency wallet addresses tied to the group, urging partners in the industry to block transactions involving those addresses. The exchange replaced customers' assets using various sources, including its corporate treasury, futures insurance, and emergency reserve funds.

Binance reiterated its commitment to fully cover the financial impact of the stolen funds, emphasizing its dedication to user protection and recovery.