Binance is investigating a massive cyberattack that drained approximately $6.3 billion from its hot wallets. The breach involved attackers manipulating the exchange's transaction approval system, allowing them to bypass usual controls and transfer funds without authorization. Blockchain intelligence firms, including TRM Labs and Elliptic, have linked the attack to TraderTraitor, a North Korea-affiliated hacking group. This same group was previously blamed for the $1.5 billion theft from Bybit in February last year.
Binance has assured customers that their account balances remain unaffected and has pledged to cover all losses. The exchange has set aside around $6.34 billion from its own funds to address potential losses, though this figure does not represent actual payouts. Withdrawals were temporarily suspended but are expected to resume within 45 hours. Stablecoin issuers Tether and Circle have frozen approximately $1.6 billion in USDT and $800 million in USDC, respectively, potentially linked to the attack.
US agencies, including the FBI and the Secret Service, are investigating the incident. US President Donald Trump confirmed that his administration is examining possible North Korean involvement. The attack has triggered a decline in cryptocurrency prices, with Bitcoin falling nearly 5% to around $76,400 before recovering slightly. Ethereum and Binance's BNB token also experienced significant drops, while shares of crypto-related companies declined.
Industry experts have mixed views on the long-term impact of the breach. Some suggest it may weaken investor confidence in centralized exchanges, while others argue that historical data shows such incidents have not significantly affected future cryptocurrency returns. Binance maintains a $1 billion Bitcoin reserve fund to protect customers in case of security breaches, separate from the funds set aside for this incident.