Key Takeaways
- • Binance says it has frozen roughly half of the $6.3bn (£4.7bn) accessed in a "complex" hack, with about $3bn of stolen digital assets secured while many funds remain in the hands of unidentified hackers, per the BBC.
- • The heist eclipses the $1.5bn Bybit exchange hack of 2025 and is believed to be a record, with several analytics firms linking it to a North Korean hacking unit; Chainalysis reports "high confidence" in the link.
- • Binance says it has set aside more than $6.34bn in company funds to cover losses and is "actively buying" crypto tokens, while telling users "your money is safe, and we're covering every loss."
- • Legal experts warn customers that Binance's loss-coverage promise may not be legally binding and that litigation may be needed to recover funds.
- • Crypto markets reacted sharply on Friday: Bitcoin fell 5% to $76,800, Coinbase dropped 12% and Robinhood fell 7.8%.
Summary
Binance, the world's largest cryptocurrency exchange, says it has frozen around half of the funds stolen in a "complex" hack in which $6.3bn (£4.7bn) was accessed, according to the BBC. The firm said $3bn of its stolen digital assets had been secured, though many remained in the hands of unidentified hackers. The exchange initially believed an engineer's laptop had been compromised, allowing unauthorised withdrawals, but later said the breach was broader. Co-CEO Richard Teng said the attack "was not carried out by one person" and that the hackers used "a self-destruct mechanism that destroyed tooling and traces as they went."
Several analytics firms have linked the incident to a North Korean hacking unit. Chainalysis said it had "high confidence" in a North Korean link, while TRM Labs said several elements resembled earlier North Korean-linked incidents, including the 2025 Bybit hack of $1.5bn. The US Secret Service said it was "working around the clock" to freeze, trace and recover the funds, and Binance said it is working with the FBI. Although Binance's US-facing exchange was unaffected, US authorities retain jurisdiction to investigate, and the hack involved US-linked assets such as the dollar-pegged stablecoins Tether and Circle.
Binance initially suspended all deposits and withdrawals before stating that "deposits remain unaffected." In a later update, the firm said it had set aside more than $6.34bn in company funds to cover stolen assets and was "actively buying" a range of crypto tokens. The exchange, founded in China in 2017, has more than 300 million registered users and said in 2024 that it had over $160bn in assets under custody.
The hack unsettled markets on Friday, when Bitcoin fell 5% to $76,800 in New York afternoon trading. Coinbase shares dropped 12%, partly reflecting earnings that were slightly below expectations, and Robinhood fell 7.8%. Commentators noted that Binance's reassurances echo those given by FTX's Sam Bankman-Fried before that exchange collapsed in 2022. London-based Edwin Coe lawyer Daniel Tunkel said customers' recourse would "come down to what [customers] have been promised in their contracts," and that Binance could be sued for non-performance if necessary.
Several analytics firms have linked the incident to a North Korean hacking unit. Chainalysis said it had "high confidence" in a North Korean link, while TRM Labs said several elements resembled earlier North Korean-linked incidents, including the 2025 Bybit hack of $1.5bn. The US Secret Service said it was "working around the clock" to freeze, trace and recover the funds, and Binance said it is working with the FBI. Although Binance's US-facing exchange was unaffected, US authorities retain jurisdiction to investigate, and the hack involved US-linked assets such as the dollar-pegged stablecoins Tether and Circle.
Binance initially suspended all deposits and withdrawals before stating that "deposits remain unaffected." In a later update, the firm said it had set aside more than $6.34bn in company funds to cover stolen assets and was "actively buying" a range of crypto tokens. The exchange, founded in China in 2017, has more than 300 million registered users and said in 2024 that it had over $160bn in assets under custody.
The hack unsettled markets on Friday, when Bitcoin fell 5% to $76,800 in New York afternoon trading. Coinbase shares dropped 12%, partly reflecting earnings that were slightly below expectations, and Robinhood fell 7.8%. Commentators noted that Binance's reassurances echo those given by FTX's Sam Bankman-Fried before that exchange collapsed in 2022. London-based Edwin Coe lawyer Daniel Tunkel said customers' recourse would "come down to what [customers] have been promised in their contracts," and that Binance could be sued for non-performance if necessary.
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