Key Takeaways
- • Attackers linked to North Korea stole about US$6.4 billion (S$8.2 billion) in cryptocurrency from Binance within 30 minutes on Oct 29, draining internet-connected hot wallets, more than four times the US$1.5 billion Bybit heist of February 2025.
- • Binance froze about US$3 billion of the stolen funds and said on Nov 1 it had covered about 95% of the loss using its corporate treasury, its secure asset fund for users and its futures insurance fund.
- • Binance customers withdrew a net US$4.72 billion after the exchange reopened for trading on Nov 2, roughly 3% of platform assets.
- • Experts say the incident has undermined confidence in centralised exchanges, with Chainalysis and BitGo urging layered controls such as multi-party approval and cold storage.
- • Bitcoin traded near US$80,000 on Nov 5, up about 4% over 24 hours, while Ether rose over 6% to about US$2,400.
Summary
A hack on Binance, the world's largest cryptocurrency exchange, has renewed concerns about the safety of holding digital assets on centralised platforms, according to The Straits Times. About US$6.4 billion (S$8.2 billion) in cryptocurrencies was stolen within 30 minutes on Oct 29. Attackers linked to North Korea drained the platform's internet-connected hot wallets and then rapidly swapped stolen stablecoins for assets such as Ether. The loss is more than four times the US$1.5 billion taken from Bybit in February 2025, previously the largest cryptocurrency heist on record.
Binance said it froze about US$3 billion of the stolen funds and, on Nov 1, said it had covered about 95% of the amount stolen using its corporate treasury, part of its secure asset fund for users, and its futures insurance fund, while keeping remaining fund balances above required risk-management levels. Customers withdrew a net US$4.72 billion after trading resumed on Nov 2, about 3% of assets on the platform.
Transaction analysis showed attackers manipulated Binance's systems into transferring funds to addresses they controlled, in some cases by altering the instructions governing fund releases and in others by initiating transfers that appeared legitimately authorised. Eric Jardine, head of research at Chainalysis, said cross-industry cooperation helped limit damage, but noted that frozen funds are not the same as recovered funds and that the sophistication of the attack remains significant. Justin d'Anethan, head of research at Arctic Digital, said investors are likely to have mixed feelings, observing that a single compromised machine enabled the transfer of billions within half an hour.
Angela Ang, managing director for Asia-Pacific and president of Singapore at BitGo, said platforms must adopt multiple security layers, including multi-party approval for fund movements, strict transaction controls and keeping most assets in cold storage. Dan Khus, chief analyst at LVRG Research, advised investors to limit exposure to individual platforms and consider holding larger amounts in their own wallets. Khus said near-term market direction will likely depend on whether risk appetite stabilises, along with security updates and macro factors such as rate expectations. Bitcoin was trading at around US$80,000 on Nov 5, up about 4% over the prior 24 hours, while Ether rose over 6% to around US$2,400.
Binance said it froze about US$3 billion of the stolen funds and, on Nov 1, said it had covered about 95% of the amount stolen using its corporate treasury, part of its secure asset fund for users, and its futures insurance fund, while keeping remaining fund balances above required risk-management levels. Customers withdrew a net US$4.72 billion after trading resumed on Nov 2, about 3% of assets on the platform.
Transaction analysis showed attackers manipulated Binance's systems into transferring funds to addresses they controlled, in some cases by altering the instructions governing fund releases and in others by initiating transfers that appeared legitimately authorised. Eric Jardine, head of research at Chainalysis, said cross-industry cooperation helped limit damage, but noted that frozen funds are not the same as recovered funds and that the sophistication of the attack remains significant. Justin d'Anethan, head of research at Arctic Digital, said investors are likely to have mixed feelings, observing that a single compromised machine enabled the transfer of billions within half an hour.
Angela Ang, managing director for Asia-Pacific and president of Singapore at BitGo, said platforms must adopt multiple security layers, including multi-party approval for fund movements, strict transaction controls and keeping most assets in cold storage. Dan Khus, chief analyst at LVRG Research, advised investors to limit exposure to individual platforms and consider holding larger amounts in their own wallets. Khus said near-term market direction will likely depend on whether risk appetite stabilises, along with security updates and macro factors such as rate expectations. Bitcoin was trading at around US$80,000 on Nov 5, up about 4% over the prior 24 hours, while Ether rose over 6% to around US$2,400.
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