Cryptocurrency exchange Binance has reportedly fallen victim to a cyberattack resulting in an estimated $6.3 billion loss, marking a record-breaking theft in the industry. According to reports from The New York Times, the incident significantly surpasses the previous record of a $1.5 billion hack on the Bybit exchange last year. In response to the breach, Binance has suspended withdrawals to conduct a security revamp, though deposits continue to operate normally.
The company addressed the situation directly on its website, stating that it is working with blockchain partners to freeze affected assets. Approximately $3 billion of the stolen funds have already been frozen on-chain. Binance emphasized that user funds are safe and committed to covering all losses through its Secure Asset Fund for Users (SAFU) and company resources. Supporting this effort, crypto platforms Tether and Circle announced they had frozen $1.5 billion and $800 million in funds, respectively, linked to the attack.
Initial investigations by Binance suggest the breach may have originated from a compromised DevOps engineer's laptop. This vulnerability allegedly allowed attackers to access a service container and execute unauthorized withdrawal transactions. Changpeng Zhao, the founder of Binance, took to social media to express confidence that all user funds would be fully covered, noting his appreciation for the rapid freezing actions taken by Tether and Circle.
Security research firm TRM Labs has attributed the attack with high confidence to TraderTraitor, an elite hacking unit associated with North Korea. The firm stated this conclusion is based on robust on-chain and off-chain intelligence and noted that it is tracking the funds through its Beacon Network. The sheer scale of the theft has shocked the crypto community, with HashKey Group senior researcher Tim Sun warning that the event could dampen risk appetite and force investors to reassess the safety of assets held on centralized exchanges.
The incident occurs against a backdrop of recent legal developments for Binance's leadership. Founder Changpeng Zhao pleaded guilty in 2023 to a felony regarding failures to prevent money laundering but was pardoned by Donald Trump in 2025. Additionally, the company maintains a business relationship with World Liberty Financial, a crypto venture linked to the Trump family.
Sources: Engadget.