Binance hack: Secret Service helps trace $6.3bn theft
The US Secret Service is helping Binance track assets stolen in a $6.3bn hack, while the exchange says it has located about $3 billion and will cover customer…
Binance is working with the US Secret Service to trace funds stolen in a $6.3 billion hack, with about $3 billion located so far, the exchange said on Friday. Binance said it would use company funds to cover customer losses, while cryptocurrency issuers froze assets linked to the theft.
The binance hack secret service investigation comes as the exchange has halted withdrawals and crypto prices have fallen. Binance said it expected withdrawal services to resume within the next 48 hours, while the fate of the remaining $3.3 billion had not been addressed in its update.
How much of the stolen crypto has been traced?
Binance said about $3 billion in affected assets had been located. Tether said it froze nearly $1.57 billion, while Circle froze more than $800 million.
The exchange said it had set aside around $6.34 billion in company funds to cover losses. Its co-CEO Richard Teng also said customer money was not used.
“We NEVER use any customer funds, so they are not impacted,” Teng said in a post on X.
The theft affected $6.3 billion in digital assets. Binance said customer funds were safe and that it was working with partners to freeze some of the assets. It also said withdrawals had been suspended while the company responded to the breach.
How did the attack work?
Teng described a complex attack involving a compromised laptop and malicious software designed to erase traces of its activity. Hackers manipulated a system used to approve transactions, moving funds from an internet-connected wallet controlled by Binance without passing through normal approval controls, he said.
The bulk of the theft unfolded in around 20 minutes beginning late on Thursday, according to US blockchain analysis firms TRM Labs and Chainalysis. TRM said attackers ordered Binance wallets to send funds to wallets they controlled, a method it said resembled an earlier attack on crypto exchange Bybit.
Both TRM Labs and Chainalysis said they were highly confident North Korea was responsible. TRM attributed the attack to North Korea’s elite hacking unit, while British blockchain analysts Elliptic called it almost certainly the largest known theft of any kind.
The attribution remains an assessment by the firms, not a finding announced by law enforcement. Binance said it was working with the Federal Bureau of Investigation and the Secret Service. The FBI said it was engaged with public and private partners to understand the activity, assess potential impacts and coordinate investigative steps.
What does the breach mean for crypto customers?
The incident has put withdrawal access and exchange security at the center of attention for Binance customers. The company’s pledge to cover losses addresses the financial impact it has announced, but users are also waiting for the resumption of withdrawals while the exchange works to secure its wallet infrastructure and trace assets.
Crypto prices fell after news of the theft. Bitcoin reached a six-week low of $76,368, while ether fell more than 3%, according to the report. Those moves show how a breach at a major exchange can coincide with wider market pressure, even as the investigation focuses on the stolen funds.
The US Secret Service had not publicly commented on its role. Binance said it was working with law enforcement partners to identify those responsible and bring them to justice.
