As $6 billion stolen from Binance, record hack rattles crypto market - Yahoo Finance
The world's largest cryptocurrency exchange, Binance, has suffered a cyberattack involving an estimated $6.3 billion in digital assets, suspending deposits and withdrawals.
Deposits and withdrawals have been temporarily suspended following what is believed to be the largest theft from a cryptocurrency exchange to date. Users' funds remained "safe" and that it would cover all losses from the "security incident," Binance says.
Working with blockchain partners, the exchange had so far frozen affected cryptocurrency assets worth around $3 billion. The stolen assets include Bitcoin, Ethereum and stablecoins such as Tether and USD Coin, whose values are pegged to traditional currencies.
North Korean hackers blamed
Blockchain analysis firm TRM Labs attributed the attack to North Korean hackers belonging to the TraderTraitor group. The attackers moved most of the $6.3 billion within 20 minutes, apparently in an attempt to prevent the assets from being frozen.
The attackers tried to move the stolen assets through a series of transactions to evade restrictions. They still controlled cryptocurrencies worth around $2.4 billion that could not be frozen by their issuers.
Attack origin investigated
Preliminary internal investigations by Binance suggest the attack may have originated from a compromised laptop belonging to one of the company's software engineers. The attackers may have used the device to gain access to a service computer and initiate unauthorized withdrawals.
Binance said there was currently no evidence that private wallet keys had been compromised. Investigators were instead examining whether the infrastructure used to authorize transactions had been manipulated.
Investor protection tips
The Swiss financial regulator offers investors tips to protect themselves from illegal or fraudulent providers, including taking time to consider investment decisions, not allowing pressure, and diversifying investments. They warn that innovative technologies can be attractive but also risky.
"In reality, major breakthroughs are few and far between. Find out as much as you can, and only invest when you are sure you understand what is being offered," the regulator advises. They emphasize that high returns always mean high risks, and the risk of loss is often much more real than the chance of turning a profit.
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