A massive hack on Binance has reignited concerns about the security of cryptocurrency exchanges, though some investors may still find crypto appealing if they understand the risks. On Oct 29, hackers linked to North Korea stole about US$6.4 billion worth of cryptocurrencies from Binance’s “hot wallets” within just 30 minutes. The attack surpassed the previous record heist of US$1.5 billion from Bybit in February 2025.
Binance managed to freeze approximately US$3 billion of the stolen funds and covered about 95% of the stolen amount using its corporate treasury, secure asset fund for users, and futures insurance fund. Despite these efforts, customers have withdrawn a net US$4.72 billion from the exchange since trading resumed on Nov 2, reflecting shaken investor confidence.
Experts noted that while Binance’s quick response helped limit the damage, the scale and speed of the attack raised questions about the ability of centralized exchanges to protect customer assets. Justin d’Anethan from Arctic Digital highlighted that the breach demonstrated how a single compromised computer could lead to billions being moved across blockchains and borders in minutes.
Eric Jardine of Chainalysis emphasized that the attack’s sophistication was undiminished, even though some funds were frozen. He noted that exchanges remain attractive targets due to the substantial funds they hold. Angela Ang from BitGo stressed the need for stronger security measures, including multi-party approvals and cold storage for assets.
Analysts advised investors to diversify their holdings and consider keeping larger amounts of cryptocurrency in personal wallets. As of Nov 5, Bitcoin was trading at around US$80,000, up about 4% in 24 hours, while Ether rose over 6% to around US$2,400.