Binance says 90% of losses from $6.3bn hack covered as FBI says North Korea behind attack

Binance, a prominent cryptocurrency exchange, announced that it has managed to replace 90% of the funds lost in a massive hack that resulted in the theft of $6.3 billion from its platform. The attack has been attributed to a group linked to North Korea, as confirmed by the FBI. In a post on X this past Saturday, the company indicated that the remaining 10% of the stolen tokens are less liquid, which could delay their recovery. Co-CEO Richard Teng reassured users that Binance is “committed to covering the remaining 10%” and emphasized that “users will not bear the financial impact of this incident.”

Following the hack, Binance temporarily halted user withdrawals but stated that it is on track to resume these services by Sunday. This update coincided with the FBI's statement on Saturday that validated earlier analyses suggesting that the hacking group, known as TraderTraitor, was responsible for the breach. TraderTraitor is believed to be affiliated with the Lazarus Group, which gained notoriety in 2014 for hacking Sony Pictures in retaliation for the film The Interview, which depicted North Korean leader Kim Jong-un in a negative light.

The FBI disclosed that it believes North Korea was behind the theft of over $6 billion in virtual assets from Binance, which occurred around October 29, 2026. In its statement, the FBI noted that it has been tracking “TraderTraitor actors” as they convert the stolen assets into Ethereum and warned that these assets are likely to be further laundered through decentralized finance platforms and instant swap services. The agency urged private sector organizations to prevent transactions linked to the addresses used by TraderTraitor for laundering the stolen funds.

Richard Teng described the cyberattack as a “complex attack” that involved a compromised laptop and malicious software designed to erase traces of its activities, complicating the investigation process. Binance reported that it has allocated approximately $6.34 billion from its own funds to cover the losses incurred from the breach.

In a statement, Binance reaffirmed its commitment to fully compensating for the financial damage caused by the incident. The funds used to repurchase the stolen tokens came from a combination of its $1 billion Secure Asset Fund for Users, which is a bitcoin reserve aimed at safeguarding customers during security breaches, alongside contributions from its Futures Insurance Fund and the company’s own treasury.

The recent attack on Binance has raised concerns among experts about the potential risks posed by advancing artificial intelligence technologies, which could threaten cryptographic security and IT protocols. Following the news of the hack, Bitcoin's value decreased by nearly 5%, Ethereum saw a drop of almost 6%, and Binance's own cryptocurrency, BNB, fell by nearly 10%.

This significant breach has highlighted North Korea's ability to engage in illicit activities to generate revenue, particularly amid the extensive international sanctions it faces due to its nuclear and missile programs. The scale of the hack has drawn significant attention, raising questions about the security of cryptocurrency exchanges and the ongoing challenges posed by state-sponsored cybercrime.