Binance users withdraw $3.6bn after record crypto hack
The exchange froze transactions in the wake of the incident, which impacted $6.3bn worth of digital assets.
Binance's customers withdrew over $3.6 billion from the exchange following a record-breaking cyber attack that led to its reopening. The firm halted all transactions after the incident, which affected $6.3 billion worth of digital assets. Major organizations, including the US Federal Bureau of Investigation (FBI), have implicated North Korea in the cyber attack, which is reportedly the largest in history.
Binance claims to have covered around 95% of the stolen assets but acknowledges that the remaining amount may take longer to recover. The company repeatedly stated it would cover all losses related to the attack. Initially, there was a surge in withdrawals, which has since declined and is stabilizing as expected, according to Binance's statement on X. Withdrawals for major cryptocurrencies like Bitcoin and Ethereum have resumed, and more services are expected to return in phases once security checks are completed.
The hack targeted Binance's main global exchange, Binance.com, while its US-focused platform remained unaffected. Binance suggested that the breach may have begun with a compromised laptop belonging to an engineer, enabling hackers to execute unauthorized transactions. The cryptocurrencies withdrawn are merely a small fraction of the total value of assets Binance holds in custody.
The company reported in 2024 that it manages over $160 billion in assets. Cryptocurrencies are digital assets traded on exchanges like Binance, existing solely in digital form and managed across computers, smartphones, and other digital devices. Binance was established in China and boasts hundreds of millions of registered users worldwide.
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