Binance freezes $3 billion after suffering record $6.3 billion crypto theft
Cryptocurrency exchange Binance suffered a record $6.3 billion security breach linked to North Korean hackers, with about $3 billion frozen.
- Development: Binance freezes $3 billion after suffering record $6.3 billion crypto theft
- Core Takeaway: Cryptocurrency exchange Binance suffered a record $6.3 billion security breach linked to North Korean hackers, with about $3 billion frozen.
- Context: Primary reporting aggregated across independent newsrooms and verified against CurrentDeck standards.
Cryptocurrency exchange Binance faced the largest digital asset theft in history following a security breach that compromised wallets across multiple blockchains. According to blockchain analytics firms TRM Labs and Chainalysis, the attack was executed by North Korean hackers. TRM Labs linked the operation to the TraderTraitor hacking group, pointing to similarities with prior incidents, such as the February 2025 breach of cryptocurrency exchange Bybit.
Binance Traces Attack Path to Compromised Engineer Laptop
An initial investigation indicated that the breach may have originated from a compromised laptop belonging to one of Binance's engineers. The device potentially allowed attackers to access an internal system and initiate unauthorised withdrawals. The attackers reportedly targeted Binance wallets across 10 blockchains and transferred most of the funds within approximately 20 minutes.
Changpeng Zhao, the former CEO of Binance, was among the first to report a possible hack of the exchange’s hot wallet. The suspected breach touched wallets on the Bitcoin, Ethereum and Tron networks. Binance co-founder Yi He assured users that the exchange would cover "all hacking losses". The company also stated that customer deposits were unaffected and that user funds remained protected.
Industry Partners and Issuers Freeze Billions in Stolen Assets
In response to the security breach, several cryptocurrency companies took measures to freeze assets connected to the breach and prevent further movement of the funds. Stablecoin issuer Tether froze nearly $1.57 billion in related assets, while Circle blocked more than $800 million. World Liberty Financial, a cryptocurrency venture associated with US President Donald Trump and his family, also coordinated with digital asset custodian BitGo to freeze affected funds. According to Binance co-founder Yi He, approximately $27 million in stablecoins and another $2 million worth of World Liberty tokens were frozen. Ripple also reportedly froze around $200 million in associated funds, with the company's Senior Vice President of Stablecoins, Jack McDonald, confirming that Ripple was monitoring the situation and coordinating with relevant parties.
| Detail | Information |
|---|---|
| Total Affected Assets | Estimated $6.3 billion |
| Assets Frozen/Located | Approximately $3 billion |
| Tether Frozen Assets | Nearly $1.57 billion (USDT) |
| Circle Frozen Assets | More than $800 million (USDC) |
| Ripple Frozen Assets | Approximately $200 million |
| Forced Liquidations | $1.53 billion over 24 hours |
Following the incident, Binance confirmed that it had been working with industry partners to identify and freeze affected assets. Approximately $3 billion has been located or frozen so far, while the status of the remaining $3.3 billion has yet to be clarified. Binance says its teams are working with law enforcement, issuers and blockchain intelligence firms to trace and freeze more assets.
Market Sell-Off and Leveraged Liquidations Following the Breach
The news triggered a sell-off across digital asset markets during Asian trading on Friday. Crypto traders faced $1.53 billion in forced liquidations over 24 hours after a security breach at Binance, according to data from CoinGlass. Bets on rising prices, known as longs, made up about $1.29 billion of the total, or 83.8% of all liquidations.
Bitcoin declined by more than 3%, reaching a six-week low of $76,368, while Ether dropped by a similar percentage to approximately $2,178, its lowest level in two months. BNB, the token originally launched as Binance Coin and used to pay fees on the exchange, also fell by approximately 5% over the preceding 24 hours to $709.70, according to CoinGecko. The impact extended to publicly traded companies, with Coinbase Global shares declining 4.8% and Bitcoin-focused investment company Strategy losing nearly 6% in extended US trading.
Frequently Asked Questions
Who was responsible for the Binance hack?
Blockchain analytics firms TRM Labs and Chainalysis attributed the attack to North Korean hackers, specifically linking the operation to the TraderTraitor hacking group.
How much money was recovered or frozen?
Binance confirmed that approximately $3 billion in affected assets has been located or frozen with the assistance of industry partners, stablecoin issuers, and custodians.
As Binance continues its security checks and internal investigations alongside law enforcement agencies, market participants await further updates regarding the recovery or status of the remaining unfrozen funds and any long-term regulatory fallout for centralized exchanges.
How significant is this development?
Cast your anonymous vote to register reader sentiment across business and policy circles.
CurrentDeck is dedicated to independent, evidence-backed reporting. This briefing was synthesized from primary source reporting, corroborated across independent newsrooms, and verified against our Editorial Standards.
