North Korean Hackers Steal $6.3 Billion From Binance
Binance says it has frozen half the stolen assets and will reimburse affected customers.
By Haruka Ricci ·
A North Korean military unit stole more than $6.3 billion in cryptocurrency from Binance on Thursday.
The attack occurred at 4:05 p.m. Eastern time. Hackers accessed investor accounts and moved the digital assets within 20 minutes. Binance is the world's largest cryptocurrency exchange, where users buy and sell digital assets like Bitcoin.
Ari Redbord, global head of policy at research firm TRM Labs, described the event as the largest bank robbery in human history. He noted that the thieves moved the funds at the speed of the internet. TRM Labs is helping Binance trace the money. Experts believe the hackers belong to a military group known as TraderTraitor. This same unit stole $1.5 billion from the Bybit exchange last year.
Redbord stated that North Korea has built the most sophisticated cyber capabilities in the world. He explained that the group is not just commercial hackers seeking profit. He said the funds will support weapons proliferation and other destabilizing activities.
Binance has frozen approximately $3 billion of the stolen cryptocurrency. The exchange stated it will pay back customers who lost funds during the breach. It has not yet detailed the specific method for those reimbursements. Many critics argue that crypto exchanges operate under weaker regulations than traditional Wall Street firms.
Amanda Fischer, policy director at Better Markets, compared the situation to the New York Stock Exchange. She noted that investors do not keep funds with the NYSE but with regulated brokers who carry insurance. Fischer said the current regulatory framework for crypto is much weaker than what US investors enjoy in other markets. She warned that smaller exchanges might struggle to pay back investors after a hack.
Fischer pointed to the 2022 collapse of FTX, where the exchange used customer funds to cover losses. CEO Sam Bankman-Fried received a 25-year prison sentence for fraud. Fischer said executives may feel tempted to dip into client funds if a trade goes bad. That practice can cascade into catastrophe for investors.
Source: WVIZ
