More than $6.3 billion (£4.7 billion) in cryptocurrency has been purloined from a leading exchange, with an insider remarking to Sky News that this incident qualifies as “the largest bank heist in history.”
The security breach specifically affected Binance, one of the globe’s largest cryptocurrency trading platforms. The company stated it is quickly working to ascertain the details surrounding the situation.
As a result, all customer deposits and withdrawals have been temporarily halted, with Binance asserting that user assets are secure and that all losses incurred from the breach will be reimbursed.
TRM Labs, a blockchain intelligence organization, has traced the incident back to a highly skilled North Korean hacking group named TraderTraitor, indicating that the theft was executed in a mere 20 minutes.
If confirmed, this would represent the most significant cryptocurrency hack to date, even exceeding the $1.5 billion stolen in last year’s Bybit exchange breach.
Ari Redbord, chief policy officer at TRM Labs, shared with Sky News: “This hack is unprecedented, both in scale and in the aftermath … Very few financial systems have witnessed thefts of this magnitude.”
He further explained that the hacker managed to transfer billions across eight blockchain networks within approximately 15 minutes. The TraderTraitor group is also under investigation for its ties to the Bybit hack, as noted by the FBI.
It is believed that the hacker had been preparing for the incident for over 36 hours.
“This theft underscores the vulnerabilities present within the system, particularly against advanced attackers operating at an unprecedented speed,” he elaborated.
Following the identification of the security issue, digital assets exceeding $3 billion (£2.2 billion) were frozen, which may help curb the cash-out efforts of the perpetrators.
Despite this, Redbord indicated that the perpetrator still possesses about $2.4 billion (£1.8 billion) in Bitcoin and Ether, the two most significant cryptocurrencies by market value.
Izabella Kaminska, editor of the independent publication The Blind Spot, described the hack to Sky News as a “highly sophisticated and meticulously planned attack.”
She pointed out that this occurrence coincides with rising concerns that significant cyber weaknesses in the financial system could soon be exposed or exploited by AI agents.
Kaminska also noted that the cryptocurrency sector has long attempted to distinguish itself from traditional banking by promoting the idea of decentralization and resistance to censorship.
However, she added: “The reality remains that most crypto platforms—and in some instances the assets themselves—are just as centrally organized as traditional banking systems.”
“Unlike banks, there are no fallback measures such as a lender of last resort or deposit insurance funds available when these platforms are breached or become insolvent. Depositors are left to fend for themselves.”
On social media platform X, Binance announced that its security team is “urgently reviewing all pertinent information” and urged users to be wary of potential scams.
The exchange claims to have more than 335 million users worldwide.
In reaction to this news, Bitcoin, the leading cryptocurrency, experienced a steep decline.
As of 1 AM UK time on Friday, Bitcoin was trading at approximately $77,000 (£57,500), representing a 5% fall over the last 24 hours. Several smaller digital currencies have seen their values drop by nearly 10%.
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“While this decline is significant, it’s far from unusual for an asset class accustomed to dramatic fluctuations,” Kaminska remarked.
Although the long-term implications of this hack for the cryptocurrency sector remain uncertain, she cautions that the broader financial system may also face challenges given the increasingly close ties between digital assets and Wall Street.
“The contagion risk among interconnected financial markets is no longer negligible,” she warned.
Jonathan Claudius, CEO of Asymmetric Research, indicated to Sky News that the strategies and preparations for this attack align closely with the tactics typically associated with North Korean hacking entities.
Chapin Fay, executive director of Crypto Watchdog, cautioned that freezing assets does not guarantee the recovery of stolen funds.
“This reported breach underscores the vulnerabilities present in even the most prominent cryptocurrency exchanges,” he told Sky News. “Customers deserve the assurances of proper safeguards across the platforms managing their funds, as well as transparent communication regarding how any losses will be mitigated.”
Eric Jardine, head of research at Chainalysis, noted that collaborative efforts within the industry are aiding in obstructing the movement of stolen assets.
He stated: “Cryptocurrency exchanges are particularly appealing targets for hackers, regardless of their location, as—using a phrase popularly attributed to bank robber Willie Sutton—’that’s where the money is.’
“While the magnitude of this event is considerable, attacks on exchanges are not a new phenomenon. Every exchange should maintain a high level of vigilance.”
(c) Sky News 2026: Crypto industry faces ‘the largest bank heist in history’ as billions are stolen in Binance breach