Binance, the world’s largest cryptocurrency exchange, says it has covered 90% of the assets stolen in a hack on Thursday. Source: bbc.co.uk.
What Happened
The hack occurred on Thursday and involved unauthorized withdrawals from Binance’s systems.
Initial investigations pointed to a compromised engineer’s laptop as a point of entry. Later, Binance updated its findings to indicate there were ‘additional points of breach’—suggesting the attack was more complex than initially thought.
The company has since restored withdrawals on several of its networks, following a suspension after the incident. Withdrawals were previously planned to resume in phases.
Financial Responsibility
Binance has pledged to absorb the full financial impact of the stolen funds, stating it will not pass losses onto users.
This includes all holdings of Bitcoin, Ethereum, Tether, and seven other widely-traded cryptocurrencies.
Of the total assets stolen, 90% has been covered. The remaining 10% may take longer to recover, with the company noting that full recovery is still ongoing.
Investigation and Attribution
The U.S. Federal Bureau of Investigation (FBI) has identified North Korea as responsible for the attack.
The FBI reported that hackers converted stolen assets into Ethereum and then used decentralised finance (DeFi) and instant swap services to move them further.
Two analytics firms previously shared intelligence indicating the Lazarus Group—also known as TraderTraitor—is likely behind the breach. The FBI has specifically named this group as a suspect.
North Korea has consistently denied involvement in such attacks.
How the Attack Was Carried Out
Richard Teng, Binance’s co-CEO, said the breach was carried out by more than one person. The hackers used sophisticated techniques to hide their tracks, including a ‘self-destruct mechanism’ to erase digital footprints.
Binance froze a portion of the stolen assets in coordination with law enforcement, intelligence firms, and private partners.
The U.S. Secret Service said it is working ‘around the clock’ to identify, freeze, trace, and recover the stolen funds.
Why It Matters
This incident is believed to be the largest crypto heist in history. It underscores growing concerns about cybersecurity in digital asset platforms and the role of state-backed hacking groups in cybercrime.
While Binance has taken steps to protect users, the incident highlights vulnerabilities in even the largest crypto exchanges.
Users are advised to remain cautious and monitor their accounts for unusual activity.
Sources & further reading
Featured image: A phone propped up in front of a laptop. On the phone screen it says Binance and the blurred laptop screen shows a bar chart. Via original publisher. Image source
