Binance, the largest cryptocurrency exchange globally, reported being targeted by a cyberattack that has compromised around $6.3 billion in digital currency, according to the company.
The company has temporarily halted deposits and withdrawals following what is considered the most significant theft from a cryptocurrency exchange to date.
In a message on X late Thursday, Binance assured users that their funds were “safe” and that it would absorb any losses caused by the “security incident.”
The exchange has reported that, in collaboration with blockchain partners, it has already frozen about $3 billion of the impacted cryptocurrency assets.
The confiscated assets encompass Bitcoin, Ethereum, and stablecoins such as Tether and USD Coin, which maintain a value tied to traditional currencies.
TRM Labs, a blockchain analytics firm, has linked the attack to North Korean hackers from the TraderTraitor group. The hackers reportedly transferred most of the $6.3 billion in just 20 minutes, seemingly to evade asset freezes.
According to TRM, the attackers endeavored to shift the stolen funds through numerous transactions to escape detection. However, they still control cryptocurrencies worth about $2.4 billion that remain unfrozen by their issuers, the firm noted.
Investigation focuses on compromised laptop
Richard Teng, the CEO of Binance, stated that the hackers employed a self-destruct feature that “erased tools and evidence as they proceeded,” complicating the investigation process.
He mentioned that Binance is collaborating with law enforcement, blockchain intelligence agencies, token issuers, and other exchanges to track and recover the swiped assets.
Initial investigations suggest that the breach may have stemmed from a “compromised laptop” of a Binance software engineer. The hackers might have utilized this device to access a service computer and initiate unauthorized transactions.
Binance stated there is currently no indication that private wallet keys have been compromised. Instead, investigators are looking into whether the systems used for transaction authorization were manipulated.
“Our teams are diligently working to address this situation safely and comprehensively,” Binance emphasized.
Teng expressed, “We will exhaust all resources to ensure these malicious individuals are held accountable.”
Simultaneously, Binance is conducting a comprehensive security assessment throughout the organization, scrutinizing “endpoints, cloud, key management, and signing,” he noted.
Bitcoin falls following attack
The incident has shaken cryptocurrency markets, leading to Bitcoin dipping below $77,000, marking its lowest point in approximately six weeks.