New York (AFP) – Cryptocurrency platform Binance said Thursday it had fallen victim to a major hack that hit around $6.3 billion in funds, with about half that amount frozen to prevent a massive theft. The company — the world’s largest crypto exchange by daily trading volumes — posted a series of sometimes contradictory messages on X, insisting that “user funds are completely safe” but also saying it would “cover all losses.”
The company said later on its X account for Latin America that “the total estimated impact is around $6.3 billion.” “We have worked with blockchain partners to freeze the affected assets, with ~$3 billion frozen on-chain so far,” it added. That would be four times the amount impacted in what had been the biggest-ever cyberattack of its kind to date: $1.5 billion taken in February 2025 from the Bybit platform. The Bybit heist was attributed at the time to a group of hackers affiliated with North Korea called TraderTraitor.
Blockchain investigation firm TRM Labs said Thursday it had “high confidence” that the Binance hack was also orchestrated by TraderTraitor, citing “robust on and off-chain intelligence.” “Several features of this attack match earlier North Korea-linked heists,” TRM said. TraderTraitor is believed to be part of the Lazarus Group — which gained notoriety in 2014 when it was accused of hacking into Sony Pictures as revenge for “The Interview,” a film that mocked North Korean leader Kim Jong Un.
At about 0030 GMT Friday, Binance said all deposits and withdrawals had been “temporarily suspended while our team conducts security checks, freezes funds and works with law enforcement.” “This figure may continue to increase as our teams work closely with law enforcement, issuers, blockchain intelligence firms, and industry partners to trace and freeze additional assets,” the company said.
The company’s statement on X said an initial investigation suggested the hack involved a compromised laptop belonging to a “DevOps engineer,” allowing the unauthorized party to access a “service container” and execute unauthorized withdrawal transactions. “We have found no evidence of any private key leaks from wallets,” Binance said, promising to share a detailed technical analysis once investigations were complete.
Paolo Ardoino, the boss of Tether — a company that issues a cryptocurrency known as USDT — said his firm froze about $1.6 billion “related to a potential Binance exchange hack.” Jeremy Allaire, who runs cryptocurrency platform Circle, said his company had frozen more than $800 million in USDC. USDT and USDC are both “stablecoins,” or digital currencies whose value is linked to a traditional currency, the US dollar. The US Department of Justice and the FBI did not immediately respond to requests for comment.
For several hours before Binance confirmed the attack, industry observers said hackers had managed to reach the platform. The prices of most major cryptocurrencies fell on news of the cyberattack, except for the stablecoins, which by definition can only fluctuate within tight margins. At about 0400 GMT, bitcoin and Ethereum were down 0.8 percent, recovering after plunges of nearly five percent and nearly six percent respectively. BNB, native to Binance, was up 2.7 percent after it tumbled nearly 10 percent.
The attack on Binance comes as many observers express worries that the ever-expanding capabilities of artificial intelligence (AI) models could compromise cryptography and IT security protocols.
© 2024 AFP
