Insurance Daily News

Binance Hack Hits $6.3B, Biggest Crypto Heist Ever

Hackers stole approximately $6.3 billion from Binance, the world’s largest cryptocurrency exchange, marking the biggest heist in the digital-asset sector. Binance halted all withdrawals and said it would cover the losses, while about $3 billion of the stolen assets have been frozen on blockchain networks.

The breach, still under investigation, involved unauthorized use of internal software that allowed transfers across ten blockchains, including Bitcoin and Ethereum, according to blockchain intelligence firm TRM Labs. TRM attributed the attack to TraderTraitor, an elite North Korean hacking unit, with high confidence based on on- and off-chain intelligence.

Binance co-founder Yi He indicated that withdrawals were expected to resume by Sunday. The exchange reported no evidence of leaked private keys and suggested the incident may have stemmed from a compromised software engineer’s laptop among other breach points.

U.S. authorities are engaged: the FBI is coordinating with partners to assess the scope and impact, while Secret Service investigators are working with the private sector to recover the stolen funds. The Justice Department acknowledged awareness of the reports but declined comment.

Stablecoin issuers responded quickly. Tether’s CEO Paolo Ardoino announced the freeze of more than $1.5 billion of USDT linked to the hack, and Circle’s CEO Jeremy Allaire said $800 million of USDC was frozen amid the exploit.

The hack follows a series of recent cyber-attacks on financial and crypto firms, including Polymarket, South Korean firms Mirae Asset Global Investments and Daishin Securities, and Japan’s GMO Internet Group. It also arrives as the industry grapples with AI-enhanced hacking capabilities and pending U.S. midterm elections that could intensify regulatory scrutiny.

Bitcoin’s price slipped below $77,000 for the first time in over a month after the news, later trading around $77,700. Industry observers note that confidence in Binance heavily influences broader market sentiment, given its $135.2 billion asset base compared with $28.6 billion at the second-largest exchange, OKX.

Previous large-scale crypto thefts include the $1.5 billion Bybit hack in February 2025 and historic losses at FTX and Mt. Gox. The Binance incident underscores the persistent security challenges facing a maturing sector seeking integration with traditional finance.

Why it matters

The scale of the Binance breach highlights systemic cyber risks that could affect insurers underwriting crypto-related policies and the broader financial ecosystem.

FAQ

How much was stolen in the Binance hack?
Approximately $6.3 billion was siphoned from Binance.

What assets were frozen after the attack?
About $3 billion of the stolen assets have been frozen on blockchain networks.

Which agencies are investigating the breach?
The FBI, Secret Service, and the Justice Department are aware and coordinating with partners.

What action did stablecoin issuers take?
Tether froze more than $1.5 billion of USDT and Circle froze $800 million of USDC.

Source: Insurance Journal. See the original source for full details.