Cryptocurrency exchange Binance has reportedly suffered a cyber attack resulting in an estimated $6.3 billion loss, marking the largest crypto theft in history. The company has promised to cover all losses using its SAFU fund and has suspended withdrawals while it works with blockchain partners to freeze affected assets. Approximately $3 billion has been frozen on-chain so far.
Crypto platforms Tether and Circle have also frozen funds associated with the attack, with Tether freezing $1.5 billion and Circle freezing $800 million. Binance clarified that deposits remain normal and that the suspension is part of a security revamp. The hack may have originated from a compromised Dev Ops engineer's laptop, allowing unauthorized withdrawal transactions.
Security firm TRM Labs has attributed the attack to Trader Traitor, North Korea's elite hacking unit, with high confidence. The incident has shocked the crypto community, potentially dampening risk appetite and prompting investors to reassess the safety of assets on centralized exchanges. Binance founder Changpeng Zhao previously pleaded guilty to a felony in 2023 related to money laundering prevention failures.
Source: Engadget · Summarized by HeadlinesBriefing