Binance resumes phased withdrawals after record $6.3bn hack
Binance has begun phased customer withdrawals after a $6.3bn hack, saying it has covered 90% of losses. The FBI attributes the theft to North Korea-linked TraderTraitor.
What you need to know
Binance has begun allowing phased customer withdrawals after a record $6.3bn hack. The exchange said it has replenished 90% of stolen tokens and will cover the rest. The FBI attributed the theft to North Korea-affiliated group TraderTraitor, which it says is converting stolen assets into ethereum.
- Binance began a phased reopening of withdrawals after 2pm Singapore time on Sunday; the hack occurred on Thursday, 29 October.
- The exchange said it replenished 90% of the amount stolen, with the remaining 10% less liquid and potentially slower to rebuy.
- Binance said it set aside about $6.34bn of company funds to cover losses, drawing on its $1bn Secure Asset Fund for Users, its Futures Insurance Fund and corporate treasury.
- The FBI said North Korea was responsible for the theft of more than $6bn in virtual assets from Binance on or about 29 October.
- The FBI said TraderTraitor actors were converting stolen assets into ethereum and urged private entities to block related transactions.
Withdrawals reopen in phases
Binance has started letting customers withdraw funds after freezing them following a record $6.3bn hack. The exchange announced a phased reopening from after 2pm Singapore time on Sunday. The first phase covers users holding ethereum, USDT and USDC tokens on the ethereum blockchain, plus some assets on BNB Smart Chain. A separate report said withdrawals had also been restored for bitcoin, BNB, XRP, Base, Doge and Optimism, with more assets to follow as security checks are completed.
Binance said it had replenished 90% of the amount stolen. The remaining 10% of tokens were less liquid and may take longer to buy, the company said. Co-chief executive Richard Teng said Binance was committed to covering the remaining 10% and that users would not bear the financial impact.
FBI points to TraderTraitor
The FBI said North Korea was responsible for the theft of more than $6bn in virtual assets from Binance on or about 29 October. It identified TraderTraitor actors, which it said were converting stolen assets into ethereum and were expected to launder them further through decentralised finance and instant swap services. The agency urged private-sector entities to block transactions linked to the addresses used.
Binance said it had set aside about $6.34bn of company funds to cover the losses, using part of its $1bn Secure Asset Fund for Users, its Futures Insurance Fund and corporate treasury. Teng described the breach as a complex attack involving a compromised laptop and malicious software.
Which tokens can Binance customers withdraw in the first phase?
The first phase covers ethereum, USDT and USDC tokens on the ethereum blockchain, plus some assets on BNB Smart Chain. Binance said additional assets and networks would reopen in phases as security checks are completed.
Sources & context
- Binance resumes customer withdrawals after record $6.3bn hack ↗The Guardian
- Binance resumes withdrawals for some cryptocurrencies after heist ↗CBS News
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