Binance, the world’s largest crypto exchange, halted withdrawals after a cyberattack on October 29 led to estimated losses of about $6.3 billion, a record hack that analysts have linked to North Korea.
According to The Hindu, Binance shared that the "security incident" led to estimated losses totalling around $6.3 billion. The outlet reported that the attack resulted in losses of assets valued at over $6 billion.
Binance said it would use company funds to cover the losses, according to the Straits Times. The exchange halted withdrawals after the attack.
Binance co-chief executive Richard Teng said on X that the "complex attack" may have begun with a compromised software engineer’s laptop, according to the Straits Times. He said this may have given hackers access to systems used to process withdrawals.
The bulk of the heist unfolded in around 20 minutes late on October 29, according to TRM Labs and Chainalysis, as reported by the Straits Times. The blockchain firms said the attack bore similarities to previous attacks blamed on North Korea.
Tether said it had frozen nearly $1.57 billion linked to Binance, while Circle said it froze $800 million, according to the Straits Times.
The attribution to North Korea rests on analysts and blockchain firms. No official confirmation appears in the reporting. North Korea routinely denies involvement in cryptocurrency thefts, and its mission in Geneva did not respond to requests for comment.
On October 30, after independent crypto trackers posted warnings, Binance said it was aware of reports of a "potential security issue." The exchange assured users that their funds were completely safe.
Market prices moved sharply on the day of the attack. Bitcoin fell more than 4% and ether fell more than 5% on October 29, according to the reporting. Both recovered some ground on October 30. Executives expressed confidence that the hack would not cause broader financial repercussions.
The $6.3 billion figure is an estimate from Binance, and the sources say the facts are still emerging. Investigations are ongoing.
Several gaps remain in the public record. North Korea has not responded to the allegations. The reporting does not explain how the stablecoin freezes will affect recovery of the stolen funds. A Japan Times article on the hack was available only as a headline and short excerpt, so its content could not be verified beyond that.
What happens next is not yet clear. Investigations are continuing, and Binance says it will cover the losses from company funds. Industry leaders are calling for a coordinated, real-time hack detection system, though the reporting does not say who among them has proposed it or what such a system would involve.
The Binance hack is one of the largest reported losses in the history of crypto exchanges, though the full scale will depend on the final figures from the ongoing investigations.
Sources
This article was written with AI assistance from the published reporting listed above. It is part of the World Brief daily news podcast.