North Korean hackers suspected in record $6.3 billion Binance crypto theft - Idaho News 6
A North Korean hacking unit is likely behind the record $6.3 billion theft from Binance, the world's largest cryptocurrency exchange, according to blockchain intelligence firm TRM.
Binance confirmed the massive breach on Friday, revealing that deposits remained unaffected but withdrawals had been suspended. The exchange stated it was beginning to recover assets for users and would cover all losses resulting from the incident.
The company initially suggested a compromised laptop may have been involved, but subsequent investigations uncovered additional "points of breach." Binance is working closely with law enforcement partners to identify the criminals and bring them to justice.
North Korean Connection
TRM attributed the attack to TraderTraitor, North Korea's elite hacking unit, with "high confidence." The firm reported that an attacker moved approximately $6.36 billion out of Binance wallets across ten blockchains, most of it within about 20 minutes.
We make this judgment with high confidence.
Chainalysis co-founder and CEO Jonathan Levin also confirmed the hack was "likely done by DPRK group TraderTraitor." The connection to North Korea would make this the largest cryptocurrency theft in history, surpassing the $1.5 billion Bybit hack in 2022, which the FBI also attributed to North Korea and TraderTraitor.
Security Concerns
Experts question why stronger approval controls weren't in place. Kok Tin Gan, CEO of cybersecurity firm NyxLab, suggested the attack involved "a never-expiring, full-access token to a Binance hot wallet." Binance denied any wallet private key leak, promising to release more technical details when its probe is complete.
Changpeng Zhao, Binance's founder who stepped down as CEO in 2023 after pleading guilty to a money laundering charge, reassured users that "User funds are safe!" while acknowledging the theft "does look like a hack on Binance." As a shareholder, he expects all user funds will be fully covered.
North Korean Cyber Operations
North Korea has increasingly turned to crypto hacking to generate foreign currency for its troubled economy and nuclear program, facing tough U.N. sanctions. In December 2022, South Korea's spy agency estimated North Korean hackers stole $1.1 billion in cryptocurrency over five years, with more than half taken in 2022 alone.
The country's capacity to steal digital assets is considered among the best in the world, making such attacks a significant concern for global cryptocurrency exchanges and financial institutions.
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