Binance covers most of theft

The largest cryptocurrency heist in history is nearly paid for by the victims themselves.

On October 29, 2026, attackers compromised a laptop at Binance and used malicious software to steal 6.3 billion dollars worth of virtual assets. The intrusion included tools designed to delete evidence, making the investigation difficult. By November 1, the exchange reported that it had replaced 90% of the stolen amount. The remaining 10% consists of less liquid tokens that may take longer to purchase.

FBI investigators identified the group behind the breach as TraderTraitor, a unit linked to the Lazarus Group. The agency confirmed that the actors converted the stolen assets into Ethereum and expected further laundering through decentralized finance services. The FBI urged private sector entities to block transactions derived from specific addresses used by the attackers.

Richard Teng, co-CEO of Binance, stated that the company is committed to covering the remaining 10% of losses. He assured users that they will not bear the financial impact of the incident. Binance suspended withdrawals immediately after the hack but announced on November 1 that it is on track to resume them on Sunday.

The company funded the recovery through several internal sources. It used part of its 1 billion dollar Secure Asset Fund for Users, which serves as a bitcoin reserve for security breaches. It also drew from its Futures Insurance Fund and its corporate treasury. Binance set aside approximately 6.34 billion dollars in total to cover the losses.

The hack triggered immediate market reactions. Bitcoin dropped nearly 5%, Ethereum fell nearly 6%, and BNB, the token native to Binance, tumbled nearly 10%. Analysts noted that the scale of the theft highlights the capacity of North Korea to generate revenue despite international sanctions.

The exchange plans to finalize the replacement of the remaining assets in the coming days. The resumption of withdrawals marks the end of the initial freeze period for users.