Binance says it has covered 95% of $6.3B North Korean crypto hack - Anadolu Ajansı
Cryptocurrency exchange Binance announced Monday it has secured assets covering about 95% of the $6.3 billion stolen in the largest cryptocurrency hack in history, attributed to North Korean hackers.
The theft, which took place Thursday, has prompted Binance to reassure users that their funds will be fully covered through a combination of the company's assets, an insurance fund and a $1 billion strategic bitcoin reserve. The hack represents the largest cryptocurrency theft in history, surpassing all previous records.
Binance's former CEO, Changpeng Zhao, also sought to reassure customers as the exchange resumed withdrawals following a temporary pause. The exchange recorded a net outflow of $3.6 billion during the first nine hours after withdrawals resumed, equivalent to about 2% of the $171 billion in assets it manages.
Trust isn't earned by what you say in good times. It's earned by what you do in hard times.
Stolen Assets Frozen
The stolen assets included various cryptocurrencies, particularly stablecoins designed to maintain a value pegged to the US dollar. Stablecoin companies froze about $3 billion of the affected funds after the breach, preventing the hackers from moving or laundering those assets further.
Binance has responded by buying back various cryptocurrencies on the open market and publishing evidence based on cryptographically verified internal records and transactions recorded on the public blockchain. The FBI and independent analysts have attributed the attack to TraderTraitor, a North Korean state-linked hacking group.
Security Concerns
Security firms Elliptic and Chainalysis reported that the attackers moved stolen funds between multiple wallets in an automated manner, though some transactions appeared to involve human decision-making. Some activity continued overnight in Pyongyang, suggesting ongoing coordination.
The hack has renewed criticism of the cryptocurrency sector's security and regulatory safeguards, which remain largely unregulated compared to traditional financial institutions. Unlike banks, cryptocurrency platforms lack government-backed deposit insurance for customers.
The incident has raised questions about whether artificial intelligence could be used to identify and exploit vulnerabilities in financial systems, though there is currently no clear evidence that AI was used in the Binance attack. Some industry executives believe the attack could lead to stronger protections in the future.
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