Binance hit by record $6.3B crypto theft, withdrawals suspended
Binance reported a record $6.3 billion cyber theft, froze withdrawals, and promised to cover all losses. The hack may stem from a compromised DevOps laptop and is linked to North Korea.
Cryptocurrency exchange Binance has fallen victim to a massive cyber attack, with losses estimated at $6.3 billion, according to a report from The New York Times and confirmed by the company. The theft, if verified, would be the largest in crypto history, dwarfing the previous record of $1.5 billion stolen from Bybit last year. Binance has suspended withdrawals while it conducts a security revamp, but insists that user funds are safe and that it will cover all losses.
How the hack happened
Binance's initial investigation suggests that the attacker may have gained access through a compromised DevOps engineer's laptop. This allowed the intruder to access a service container and submit unauthorized withdrawal transactions, the company wrote on its website. The exchange has worked with blockchain partners to freeze affected assets, with approximately $3 billion frozen on-chain so far. Stablecoin issuers Tether and Circle also froze $1.5 billion and $800 million, respectively, in funds linked to the attack.
North Korea suspected
Multiple reports point to North Korea as the culprit. Security research firm TRM Labs attributed the attack to TraderTraitor, North Korea's elite hacking unit, based on "robust on- and off-chain intelligence." TRM said it makes the judgment with "high confidence" and is tracking the funds through its Beacon Network, which monitors real-time crypto crimes. The scale of the breach has shocked the crypto community and may prompt investors to reassess the safety of assets held on centralized exchanges, according to HashKey Group senior researcher Tim Sun.
Binance's response and industry impact
Binance said it will cover all losses using its Secure Asset Fund for Users (SAFU) and company funds. Founder Changpeng Zhao, who stepped down as CEO after pleading guilty to money laundering charges in 2023, commented on social media that he expects all user funds to be fully covered. The company has a business relationship with the Trump family's crypto venture, World Liberty Financial, but the hack appears unrelated. The incident highlights persistent security risks in the crypto exchange sector, even for the largest platforms, and could accelerate regulatory scrutiny and calls for stronger safeguards.
What happens next
Withdrawals remain suspended while Binance completes its security review, though deposits are still normal. The company has not provided a timeline for resuming withdrawals. Blockchain analysts continue to monitor the movement of stolen funds, and law enforcement may become involved given the suspected North Korean connection. For users, the immediate reassurance is that Binance has committed to covering all losses, but the long-term trust in centralized exchanges may take a hit as the industry grapples with the largest theft on record.
