World’s Biggest Crypto Exchange Hit by Record $6.3 Billion Hack - Newsweek

Binance announced on Friday that suspected hackers had stolen approximately $6.3 billion, potentially making it the largest cryptocurrency heist in history. The breach has forced the exchange to suspend withdrawals, causing the value of cryptocurrencies to plummet as markets react to the security incident.

Blockchain analysis firm TRM Labs has attributed the attack to TraderTraitor, an elite North Korean hacking unit. The FBI previously named this same group as responsible for the $1.5 billion Bybit hack in February 2025, suggesting a pattern of sophisticated state-sponsored cyber attacks targeting cryptocurrency platforms.

Security Breach Details

Binance's initial investigation indicates that the hackers compromised a software engineer's laptop, gaining access to the platform's systems and authorizing withdrawals. The attack appears to have been meticulously planned, with TRM Labs estimating it took approximately 36 hours to prepare.

The heist unfolded rapidly between 8:05 p.m. and 8:09 p.m. on October 28, when five Binance hot wallets transferred 233.46 million XRP to one of the hackers' addresses. Within minutes, wallets on Optimism and Solana were compromised, followed by a Bitcoin hot wallet that was drained of 18,270 BTC using a technique called a 'peel chain' to obscure the funds' journey.

Market Impact

The hack sent shockwaves through the cryptocurrency market, with BNB (formerly Binance Coin) dropping by more than 4.7 percent. Bitcoin fell approximately 4.5 percent to $76,368 before recovering slightly to $78,434. Other stablecoins and cryptocurrencies were also affected as traders reacted to the security breach.

Tether and Circle, two major stablecoin issuers, have taken action to freeze funds related to the hack. Tether CEO Paolo Ardoino confirmed freezing over $1.56 billion, while Circle chief Jeremy Allaire reported freezing more than 800 million USDC, demonstrating the industry's coordinated response to contain the damage.

User Response

Kathryn Westmore, director of financial crime at UK Finance, warned users to be vigilant against potential fraud attempts following the breach. She emphasized that while Binance has stated user funds should be safe, personal data may have been compromised, making users vulnerable to phishing attacks and identity theft.

Binance has committed to covering all costs associated with the massive hack. Even though he no longer runs the company, Binance co-founder Changpeng Zhao expressed confidence on social media platform X, stating: 'I expect all user funds will be fully recovered.' This assurance comes despite Zhao's controversial pardon in 2025 for money laundering charges, which drew criticism regarding political influence over the Justice Department.

The incident marks another major security challenge for Binance, which was previously targeted in 2022 when a hacker artificially created 2 million BNB tokens worth approximately $570 million. Although the platform intervened, the attacker still managed to steal around $115 million in that incident.