Binance users withdraw $3.6bn after record crypto hack

Binance, the world's largest cryptocurrency exchange, witnessed a record hack last week that resulted in $3.6 billion (£2.7 billion) of assets being withdrawn by users as the platform reopened on Sunday. The incident, which impacted $6.3 billion worth of digital assets, has raised concerns about the security of digital currencies.

Major organizations, including the US Federal Bureau of Investigation (FBI), have pointed their fingers at North Korea for potentially orchestrating the cyber attack, which is deemed the largest in history.

Following the hack, Binance suspended all transactions to safeguard its users. The company has reportedly covered approximately 95% of the stolen assets, but the remaining value may take longer to recover. Binance has consistently pledged to bear the full brunt of the losses resulting from the attack.

Initially, there was a surge in withdrawals, but this trend has since tapered off and is now stabilizing as anticipated. Binance confirmed that withdrawals for major cryptocurrencies such as Bitcoin and Ethereum have resumed, with additional services set to return in phases once thorough security checks are completed.

The hack targeted Binance's global centralized exchange, Binance.com, while its US-focused platform remained unaffected by the incident. According to Binance, early investigations suggest the breach may have originated from a compromised laptop belonging to an engineer, enabling hackers to gain unauthorized access and carry out unauthorized transactions.

Despite the magnitude of the hack, the cryptocurrencies withdrawn represent only a fraction of the total value of assets under Binance's custody. In 2024, Binance disclosed holding over $160 billion in assets. Cryptocurrencies are digital assets traded on platforms like Binance, existing solely in virtual form and managed on computers, smartphones, and other digital devices. Binance was established in China and boasts hundreds of millions of registered users worldwide.