Binance Hit by $6bn Hack; North Korea Suspected

Hackers steal over $6 billion from digital wallets of world’s largest cryptocurrency exchange Binance; firms freeze $3 billion of stolen assets

Hackers have stolen more than $6 billion worth of cryptocurrency from digital wallets held at Binance, the world’s largest cryptocurrency exchange, in what analysts have described as the biggest cryptocurrency heist in history.

The attack, reported on Thursday, has triggered an international effort by cryptocurrency firms and blockchain intelligence companies to trace and recover the stolen digital assets. By Thursday night in the United States, the companies had managed to freeze approximately $3 billion of the stolen funds.

Several cryptocurrency investigation firms have pointed to a suspected North Korean hacking group, although the attribution has not been independently confirmed.

Binance said its initial investigation suggested that the attack originated through an engineer’s laptop, allowing the hackers to access a service container and execute unauthorized withdrawal transactions.

The exchange said it would cover all losses using company funds and its emergency assets fund, assuring customers that their funds remained safe.

Binance also temporarily suspended deposits and withdrawals while conducting security checks. It revoked authorization for the affected address and engaged law enforcement agencies and blockchain intelligence partners to trace and recover the stolen cryptocurrency.

North Korean hackers suspected

Several blockchain intelligence firms have linked the attack to an elite North Korean hacking unit.

TRM Labs attributed the incident to North Korean hackers based on what it described as strong on-chain and off-chain intelligence.

Pangolin Intelligence, a Singapore-based blockchain tracking firm, also said its analysis indicated the involvement of a North Korean cyber unit.

An analyst at Pangolin Intelligence told CNN that the attribution was based on an examination of blockchain transactions associated with the attack and comparisons with previous incidents linked to North Korean hackers.

The analyst warned that the recovery effort could turn into a prolonged battle, as North Korea-linked hackers could use money laundering networks to convert the stolen cryptocurrency into cash.

Chainalysis, another cryptocurrency tracking firm, said it was monitoring the stolen assets as they moved across multiple blockchain networks, including Bitcoin and Ethereum.

A Chainalysis spokesperson told CNN that the company had high confidence that North Korea was behind the attack.

North Korea has previously denied allegations of involvement in cyberattacks. CNN said it had contacted the country’s mission to the United Nations for comment.

Binance promises to cover all losses

The scale of the theft has surprised cryptocurrency market analysts, with the amount stolen exceeding previous records for cryptocurrency-related cyberattacks.

Aravind Srinivasan, head of the systematic over-the-counter business at cryptocurrency market maker GSR, described the incident to Reuters as the biggest hack in history.

The Federal Bureau of Investigation (FBI) and the US Secret Service have also been approached for comment. Both agencies investigate cybercrime, while the FBI has previously deployed specialist analysts to help freeze assets stolen in major cryptocurrency attacks.

Previous $1.5 billion Bybit hack

The suspected involvement of North Korean hackers has raised concerns among cryptocurrency industry experts, as the country has previously been linked to some of the world’s largest digital asset thefts.

North Korean hackers were blamed for the previous record-breaking cryptocurrency heist, in which approximately $1.5 billion was allegedly stolen from Bybit, another major cryptocurrency exchange.

The attackers reportedly transferred the funds within minutes, with the stolen amount representing a significant portion of North Korea’s reported annual gross domestic product.

According to current and former US and South Korean officials, cyberattacks have become an important source of revenue for North Korea, which faces extensive international sanctions.

Reports by the United Nations and private cybersecurity firms indicate that North Korea-linked hacking groups have stolen billions of dollars from banks and cryptocurrency companies over recent years.

A 2023 CNN investigation also highlighted how South Korea’s intelligence service worked with private cryptocurrency tracking experts to seize approximately $1 million in digital assets stolen by North Korean hackers.

The latest Binance incident has renewed concerns about cybersecurity risks facing the global cryptocurrency industry and the challenges of recovering stolen digital assets once they move across multiple blockchain networks.

About The Author