October 30: Cryptocurrency giant Binance has reported a major security incident that has impacted approximately $6.3 billion (£4.7 billion) worth of digital assets. The company said it would cover all losses suffered by affected users.
According to Binance’s preliminary findings, the suspected attack may have involved a compromised laptop belonging to an engineer. The attacker allegedly used the compromised access to carry out unauthorised withdrawals.
Binance said around $3 billion worth of assets had been frozen with assistance from other cryptocurrency platforms. Efforts to trace and recover the remaining assets are continuing. The company has also promised to release a detailed report after its investigation is completed.
North Korean hacking group suspected
Blockchain intelligence and financial investigation firm TRM Labs has attributed the incident to a North Korean hacking group known as TraderTraitor. The firm said several elements of the attack resembled earlier cyber incidents linked to North Korea.
Binance has not independently confirmed the identity of the attackers and said it was working with law enforcement agencies to identify those responsible.
Meanwhile, major cryptocurrency companies Tether and Circle reportedly froze around $2.4 billion in assets linked to the incident. Several platforms are cooperating in efforts to trace and recover the affected funds.
Cryptocurrency markets react
The news of the security breach triggered a decline in cryptocurrency prices. Bitcoin fell by more than 4%, while other major digital currencies, including Ethereum and Solana, also recorded sharp declines.
Binance, which has more than 300 million registered users worldwide, has assured customers that all losses will be covered. The company is continuing its investigation and security checks.
The incident is being described as one of the largest cryptocurrency security breaches on record. However, the final extent of the losses and the full circumstances surrounding the attack are yet to be established.
