Binance announced the reopening of withdrawals for 15 blockchain networks after a hack that compromised its hot wallets and resulted in the theft of approximately $6.3 billion. Within the first 12 hours of resuming service, the exchange processed about $4.65 billion in withdrawals and received $1 billion in new deposits, leading to a net outflow of $3.64 billion.
Recovery and Funding Sources
Binance reported that roughly 95 % of the stolen assets have been replenished using a combination of corporate reserves, insurance, and 50 % of the Secure Asset Fund for Users (SAFU). Founder Changpeng Zhao noted that 98 % of users chose to keep their funds on the platform after withdrawals reopened.
Details of the Attack
The hack, attributed to North Korea’s TraderTraitor group, involved compromised delegated wallet permissions. Blockaid CEO Ido Ben‑Natan indicated that the attackers could have executed the theft without using EIP‑7702, though the method may have facilitated a rapid sweep of assets. Binance co‑CEO Richard Teng emphasized that the breach was not the result of a single compromised laptop or a one‑click action.
Law Enforcement Involvement
The FBI and U.S. Secret Service assisted in tracking and freezing stolen funds. Elliptic estimated that about $2.84 billion of the stolen stablecoins, primarily USDC and USDT, were frozen on‑chain. The attackers also borrowed roughly $44.6 million of ETH on Aave to accelerate the movement of assets.
THORChain Response
North Korean hackers used THORChain to swap stolen cryptocurrencies, causing a 13 % rise in the protocol’s native token RUNE. THORChain co‑founder JP Thor, who claims no longer to be involved, opposed any freeze of the network, arguing that halting the protocol would undermine its decentralization principles. THORChain node operators can vote to pause the network with a two‑thirds majority, but the protocol can continue operating with as few as four nodes.
Market Impact
Crypto‑related equities, including Coinbase, Circle and Strategy, experienced sharp sell‑offs. Bitcoin fell to around $77,745, down 3 % for the week, while Ethereum traded near $2,260, down 3.5 %. The total cryptocurrency market capitalization stood at approximately $2.21 trillion.
Additional Developments
Trezor warned customers who purchased its Safe 5 hardware wallets from the former reseller CryptoBilis to move their funds after a report of a suspected implant. The company has not confirmed any loss linked to the device.
Regulatory Commentary
Senator Cynthia Lummis and the Digital Chamber cited the hack as a reason to advance crypto‑focused legislation aimed at preventing future attacks.
