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FBI blames North Korea for record $6.3 billion Binance hack; exchange replaces 90% of stolen funds
The FBI blamed North Korea for the $6.3 billion Binance hack as the exchange replaced 90% of stolen funds.
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The FBI has blamed North Korea for the theft of $6.3 billion in cryptocurrency from Binance, calling it the work of a state-backed hacking group known as TraderTraitor. The attack, described as the biggest crypto heist in history, took place on Thursday and affected the world's largest cryptocurrency exchange.
Binance said on Saturday that it had replaced 90% of the stolen assets using company funds and would cover the remaining losses. Co-CEO Richard Teng assured customers that they would not face any financial impact from the breach.
In a statement, the FBI linked the attack to TraderTraitor, a group previously blamed for a $1.5 billion hack of cryptocurrency exchange Bybit last year. The bureau described the latest incident as part of the group's malicious cyber activity.
FBI warns of attempts to move stolen cryptocurrency
Deep Dive
The FBI said its investigation found that the hackers had started converting the stolen funds, mainly into Ethereum, another major cryptocurrency.
The bureau warned that the group could use decentralised finance (DeFi) platforms and instant swap services to move the assets and make them harder to trace.
It also urged cryptocurrency exchanges, blockchain tracking firms and other organisations to block transactions connected to wallet addresses identified in the investigation. The move is aimed at preventing the stolen funds from being laundered.
Also Read: Suspected Binance hack triggers $2.5 billion freeze in crypto assets
Binance says 90% of stolen assets replaced
Binance said it had recovered or replaced 90% of the stolen amount by purchasing new tokens with company money. The remaining 10% involves less liquid cryptocurrencies, which may take longer to replace.
"We've now replenished 90% of the stolen assets, and we're committed to covering the remaining 10%. Our users will not bear the financial impact of this incident," Teng wrote on X.
The exchange said it had set aside around $6.34 billion in company funds to cover the losses. The money used to buy replacement tokens came from its $1 billion Secure Asset Fund for Users (SAFU), its Futures Insurance Fund and its corporate treasury.
Also Read: Binance founder CZ tells Elon Musk to stop mocking $6.3 billion crypto hack: 'Bad time to troll'
Binance plans to resume withdrawals on Sunday
Following Thursday's attack, Binance temporarily stopped customer withdrawals. However, the exchange said on Saturday that it remained on track to reopen the service on Sunday.
Teng had earlier described the breach as a complex attack involving a compromised laptop and malicious software designed to erase evidence of its activity.
Binance also said it had taken a fresh snapshot of customer assets as part of its proof-of-reserves process. Once the full report is available, users holding 10 listed cryptocurrencies, including Bitcoin, Ethereum, Tether, BNB and Solana, will be able to check whether their holdings are backed at a minimum ratio of 1:1.
The exchange has pledged to cover the remaining losses as the FBI continues to investigate the movement of the stolen funds.
