On Sunday, Binance reported that it experienced approximately $4.7 billion in withdrawals following a significant hack that led to the theft of over $6 billion in digital assets, which the FBI has attributed to North Korean actors.
As the largest cryptocurrency exchange globally by daily trading volume, Binance faced a severe market reaction after this incident, with the values of most major cryptocurrencies plummeting on Friday.
In light of the situation, the company reassured users that it would cover the losses incurred from the breach, explaining that it has utilized its own funds to purchase tokens to restore 90% of the stolen assets.
Following the attack, Binance paused user withdrawals but announced that they would be reinstated gradually, starting with the first phase on Sunday.
Between 0600 GMT and 1530 GMT, the platform processed $4.65 billion in withdrawals alongside $1.01 billion in deposits.
The net outflow of $3.64 billion represented about 2.1% of the total assets managed by the exchange.
In a statement released on Saturday, the FBI declared that North Korea was responsible for the hack, corroborating earlier speculation from independent analysts regarding the involvement of a North Korean group known as TraderTraitor.
TraderTraitor is linked to a previous incident where $1.5 billion was stolen from the Bybit exchange in February of the previous year.
According to the FBI, “The Federal Bureau of Investigation (FBI) is making public that the Democratic People’s Republic of Korea (North Korea) was behind the theft of more than $6 billion USD in digital assets from Binance, around October 29, 2026.”
The agency also noted that it had identified “TraderTraitor actors” converting the stolen cryptocurrencies into Ethereum, with expectations that these assets would undergo further laundering through decentralized finance and instant swap methods.
The FBI has urged private sector entities to “prevent transactions involving addresses used by TraderTraitor actors to launder these assets.”
Despite the allegations, US President Donald Trump expressed skepticism regarding North Korea’s involvement in the incident.
“I have no concerns. We are learning as we go. We don’t know if it’s North Korea,” stated Trump at his Florida residence late Saturday.
The president has often reminisced fondly about summits he held with North Korean leader Kim Jong Un during his first term in office.
– Commitment to Cover Losses –
Binance announced on Saturday that it had reserved over $6.34 billion in company resources to address the financial losses due to the hack.
“Our promise stands firm: Binance will completely cover the monetary consequences of the funds stolen in this incident,” the company stated on X.
They reported utilizing company finances to acquire tokens that would restore 90% of the stolen assets, with the remaining 10% classified as “less liquid,” meaning they may take longer to acquire in adequate amounts.
The breach on Binance has heightened concerns among experts about the increasing capabilities of artificial intelligence models potentially undermining cryptographic and IT security measures.
In the aftermath of the hack, Bitcoin fell by nearly five percent, while Ethereum dropped around six percent, and Binance’s own token, BNB, sank by almost 10 percent.
The magnitude of the breach has cast a spotlight on North Korea’s ability to procure funds through illicit means, despite ongoing international sanctions linked to its nuclear and missile activities.
TraderTraitor is believed to belong to the Lazarus Group, infamous since 2014 for hacking Sony Pictures in retaliation for “The Interview,” a film that lampooned North Korean leader Kim Jong Un.
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