Binance freezes $3B after massive hack

Binance has suspended withdrawals from its platform to contain the impact of a major security breach. The world’s largest cryptocurrency exchange froze approximately $3 billion in affected assets. The company stated that user deposits remain intact and that withdrawals are expected to resume within one to two days. Binance confirmed it will cover all losses incurred by users during the incident.

TRM, a U.S.-based blockchain intelligence firm, attributed the attack to TraderTraitor, a unit of elite hackers from North Korea. TRM stated it makes this assessment with a high degree of confidence. The firm reported that an attacker moved about $6.36 billion from Binance wallets across ten blockchains. Most of the transfer occurred within twenty minutes. This amount marks the largest recorded cryptocurrency theft in history.

Binance announced on X that its initial investigation suggested a compromised personal computer played a role in the incident. Subsequent analysis revealed additional vulnerability points. A spokesperson for Binance said the company is working closely with law enforcement partners to confirm the identity of the criminals and bring them to justice. The exchange has not yet found evidence of leaked private keys from its wallets.

Chainalysis, another blockchain analysis firm, also linked the hack to the North Korean group TraderTraitor. Jonathan Levin, the co-founder and chief executive of Chainalysis, posted the finding on X. He described the attackers as members of the Democratic People's Republic of Korea. This marks the second major incident involving the group. In February of last year, the FBI said North Korea and TraderTraitor were responsible for a $1.5 billion hack of the Bybit exchange.

North Korea has relied on cyber theft to generate foreign currency for its economy and nuclear program. South Korea’s spy agency reported in December 2022 that North Korean hackers stole an estimated $1.1 billion in cryptocurrency over five years. More than half of that total was taken in 2022. Experts note that the country’s ability to extract digital assets is among the best in the world.

Changpeng Zhao, known as CZ, founded Binance in 2017. He pleaded guilty to a felony related to money laundering controls in 2023 and stepped down as chief executive. President Donald Trump granted Zhao a pardon in 2025. Zhao posted on X on Thursday that user funds are safe. He added that the event appears to be a hack of Binance. As a shareholder, he expects all user funds to be fully covered.

Kok Tin Gan, co-founder and chief executive of cybersecurity firm NyxLab, questioned the lack of stronger access controls. He suggested a single signature gave the attacker a full access token with no expiration date. This token was linked to one of Binance’s hot wallets. These wallets are connected to the internet and store user private keys. Binance plans to publish more technical details when its investigation concludes.