Binance says it has replaced 90% of funds in $6.3B North Korea-linked hack
Binance says it has covered 90% of the roughly $6.3 billion stolen in a hack linked to North Korea, as it works toward restarting withdrawals.
Binance says it has replaced about 90% of the crypto taken in a hack that outlets describe as the largest in the industry's history by dollar value. Bitcoin Magazine and Cointelegraph put the total at $6.3 billion, while Decrypt reports roughly $6.4 billion, so the exact figure differs by source.
According to Bitcoin Magazine, about $3 billion was frozen through stablecoin operators and $3.3 billion has not been recovered. Cointelegraph reports that Binance also said about $3 billion of the stolen funds had been frozen in various locations.
What Binance says it is doing
In a Friday post on X, Binance said it would absorb the financial impact of the theft instead of its users, according to Cointelegraph. On Saturday it said it had already covered 90% of the affected amount. CoinDesk reports that the exchange is using corporate funds, futures reserves and its SAFU fund, and that user balances remain intact.
Bitcoin.com News reports that, in its third security update on X, Binance said 10 cryptocurrencies, including BTC, ETH and XRP, were fully backed. The exchange is sourcing less liquid tokens to close the remaining gap and is targeting a Sunday restart of withdrawals, according to that report.
Attribution and investigation
Decrypt says the attackers were tied to North Korea. Bitcoin Magazine says TRM Labs linked the attack to a North Korean group called TraderTraitor. Cointelegraph also describes the attribution to a North Korean group as widespread. Cointelegraph's related coverage says the FBI and Secret Service have joined the response.
Bitcoin Magazine's video chapters say the funds moved through stablecoins and Aave. They also list solvency questions and a separate Polymarket hack that drained $2.7 million from user wallets. CoinDesk frames the episode as a paradox for decentralization debates: centralization made the hack possible, but it also helped freeze $3 billion.
Political reaction and what to watch
Cointelegraph reports that the hack quickly became a political topic ahead of the US election on Nov. 3. President Donald Trump said on Friday that officials were looking into it and that Binance was saying it would get the money back. Senator Cynthia Lummis cited the stalled Clarity Act, which she said would give crypto firms legal cover to freeze suspicious transactions. The Senate failed to advance that bill on Sept. 15.
CFTC Chair Michael Selig said the hack supported the case for crypto market rules and pointed to offshore exchanges lacking US-style safeguards. Representative Maxine Waters called it a wake-up call and criticized Republican deregulation and the Trump family's ties to Binance.
For traders, the near-term markers are whether Binance reopens withdrawals as targeted, whether it completes the remaining 10% by sourcing less liquid tokens, and whether more of the $3.3 billion that has not been recovered is frozen. Bitcoin Magazine's chapter list also points to solvency questions. Further details from investigators and from Binance's updates will show how those play out.
Sources
- What to Know About the $6.3 Billion Binance Hack Bitcoin Magazine
- Binance $6.3B record hack sparks pre-election political chatter Cointelegraph
- The $6.3 billion Binance hack paradox: Centralization made the hack possible, but also saved $3 billion CoinDesk
- Binance Hack: Everything You Need to Know About the Biggest Crypto Heist in History Decrypt
- Binance says it has replaced 90% of stolen crypto after massive $6.3 billion breach CoinDesk
- Binance Says BTC, ETH, XRP and 7 Other Cryptos Fully Backed After Hack Bitcoin.com News
Written with AI assistance from the sources above and checked against them. Not investment advice.