Long accused of abetting crypto crimes, Binance has now become a victim - Boston Herald

The cryptocurrency exchange and its founder have faced persistent accusations of enabling criminal activities, but now find themselves on the receiving end of a massive cyberattack. The alleged theft of $6.3 billion in bitcoin and other digital currencies marks a dramatic twist for Binance, which has dominated the crypto exchange market despite facing intense regulatory scrutiny.

Founded in 2017 by Zhao, a former McDonald's worker who moved from China to Canada, Binance operates as a global marketplace for cryptocurrencies like bitcoin and ether. The company has no physical headquarters but maintains a significant online presence, with Zhao's wealth estimated at over $100 billion by Forbes.

From Success to Scandal

As cryptocurrencies gained mainstream acceptance, Binance expanded rapidly, acquiring a large crypto wallet, funding a stablecoin, and partnering with various financial institutions. It surpassed competitors like Coinbase and FTX to become the largest exchange by trade volume. However, this success attracted increased regulatory attention.

Under the Biden administration, regulators accused Binance of operating an unregistered securities exchange and violating the Bank Secrecy Act. In 2024, Zhao became the first person sentenced to prison time after pleading guilty to charges including allowing trades between U.S. and Iranian users in violation of sanctions and failing to report suspicious transactions involving Hamas and al-Qaida.

Political Reprieve and New Threat

After serving four months in jail and stepping down as CEO, Zhao received a surprising reprieve when President Trump pardoned him in October 2025. Trump, who had become a crypto advocate after previously criticizing it, claimed Zhao had been unfairly treated by the previous administration. The White House referred to the case as part of 'The Biden Administration's war on crypto.'

Now, Binance faces a different kind of threat. U.S.-based blockchain intelligence firm TRM announced that the $6.3 billion heist was most likely carried out by TraderTraitor, described as North Korea's elite hacking unit. Pyongyang has increasingly turned to cryptocurrency to circumvent U.N. sanctions while developing nuclear weapons.

Binance has begun working to recover the stolen funds, announcing it is collaborating with blockchain partners to freeze approximately $3 billion in affected assets. Zhao assured users that their funds remain safe, though the full extent of the recovery effort remains uncertain.