North Korean hackers suspected in record $6.3 billion Binance crypto theft - Scripps News
North Korean hackers are suspected in a record $6.3 billion cryptocurrency theft from Binance, the world's largest crypto exchange, which has frozen $3 billion in affected assets.
Binance, the world's largest cryptocurrency exchange, has been targeted in a massive hack that saw approximately $6.36 billion moved across ten blockchains, with most of it transferred in just 20 minutes. The company has worked with blockchain partners to freeze roughly $3 billion in affected assets and has begun the process of recovering funds for users.
According to a U.S.-based blockchain intelligence firm TRM, the attack was likely carried out by TraderTraitor, described as North Korea's elite hacking unit. "We make this judgment with high confidence," TRM stated, noting that several features of this attack match earlier North Korea-linked heists, including a $1.5 billion hack on Bybit in February 2023.
Security Breach
Binance's initial investigation suggested the incident may have involved a compromised laptop, though subsequent findings uncovered additional "points of breach." Deposits remain unaffected, but withdrawals have been suspended and are expected to resume within the next day or two. The company has assured users it will cover all losses.
North Korean Connection
Blockchain analysis company Chainalysis also believed the Binance hack was "likely done by DPRK group TraderTraitor," its co-founder and CEO Jonathan Levin wrote on X. DPRK stands for the Democratic People's Republic of Korea, North Korea's official name. When asked about potential ties to North Korea, a Binance spokesperson confirmed the company is "working closely with our law enforcement partners to confirm the identity of the criminals and bring them to justice."
Experts note that North Korea has increasingly turned to crypto hacking and other illicit cyber activities as a source of foreign currency to support its troubled economy and fund its nuclear program amid tough U.N. sanctions. In December 2022, South Korea's spy agency estimated North Korean hackers had stolen approximately 1.5 trillion won ($1.1 billion) in cryptocurrency and other virtual assets in the past five years.
Security Concerns
The hack raises questions about Binance's security protocols. Kok Tin Gan, cofounder and CEO of cybersecurity firm NyxLab, suggested the breach may have occurred through a signature that gave the attacker a never-expiring, full-access token to a Binance hot wallet. "This looks like one signature that gave the attacker a never-expiring, full-access token to a Binance hot wallet," he said.
Binance refuted this claim on X, stating it had "found no evidence of any wallet private key leak" and would release more technical details once its probe is complete. The incident comes as Changpeng Zhao, who founded Binance in 2017 but stepped down as CEO in 2023 after pleading guilty to a felony linked to money laundering, reassured users that while he no longer manages the company, he expects all user funds will be fully covered.
Related
