The largest crypto hack in history began with a series of small tests on the Ethereum blockchain. Hackers, later identified as North Korean actors, used controlled accounts to run code sequences, draining just a few dollars at a time. This rehearsal culminated in a massive attack on Binance on Oct 29, where they stole over US$6.3 billion from wallets across four blockchains.
Security researchers and Binance executives worked tirelessly to trace the stolen funds and freeze accounts. Binance co-founder and co-CEO XYi He was alerted to the breach while scrolling through social media in Abu Dhabi. Within minutes, a global war room of about 100 people was formed to coordinate efforts with law enforcement and other crypto firms.
The hack occurred at a critical time for the crypto industry, which has been gaining mainstream acceptance. The Trump administration has been pushing for broader adoption of cryptocurrencies and blockchain technology. Experts fear the attack could undermine these efforts, highlighting the industry's vulnerabilities.
Binance has pledged to reimburse affected users and has already restored 90% of the stolen tokens. The company acknowledged areas for improvement in security and vowed to invest more in safeguarding its platform. Meanwhile, some traders saw the hack as an opportunity, profiting from the market turmoil.