Bitcoin eases to $77,900 as Binance customers pull $3.6 billion after withdrawals reopen

Binance, the world's leading cryptocurrency exchange, attempted to rebuild trust following a massive $6.3 billion theft from its platform. Company officials assured customers that their funds remained secure and pledged to compensate for all losses. Analysts attributed the attack to North Korea, highlighting it as potentially the largest financial heist ever recorded.

Binance's co-CEO, Yi He, revealed that the $3 billion recovered represented just 2% of the exchange's total assets and reserves. The company's technical team aimed to resume withdrawals within 34 hours, while a full security review and a preliminary proof-of-reserves analysis were scheduled within 12 hours and by Monday, respectively.

Binance had allocated approximately $6.34 billion internally to cover the losses, courtesy of a $1 billion bitcoin reserve fund. Founder Changpeng Zhao and co-CEO Richard Teng attributed the breach to a sophisticated attack, involving compromised credentials and malicious software, which complicated the investigation. Bitcoin and Ethereum prices dipped, with Bitcoin reaching a six-week low of $76,368 and Ethereum falling to a two-month low of $2,178.

The incident added to a series of crypto thefts, with TRM Labs estimating that 2022 saw $2.9 billion in losses from nearly 150 attacks. Binance's security breach is believed to be the largest ever reported, although North Korea has been linked to similar attacks in the past. The company was collaborating with the FBI and other authorities to trace and recover the stolen funds.