Key takeaways
- CZ thanked the FBI and Secret Service for helping freeze approximately $3 billion in stolen cryptocurrency
- The FBI identified North Korean hacking group TraderTraitor as responsible for the $6.3 billion Binance hack
- Customers withdrew approximately $3.64 billion following the attack
Binance founder Changpeng Zhao (CZ) credited US law enforcement with preventing a steeper Bitcoin price decline after the record-breaking $6.3 billion Binance hack. The FBI confirmed North Korean involvement and billions of dollars flowed out of the cryptocurrency exchange.
The Oct. 29 attack is considered the largest cryptocurrency theft in history, and it forced Binance to temporarily suspend withdrawals while investigators worked to trace stolen assets and identify those responsible.
CZ Credits US Authorities for Limiting Bitcoin Losses
On Nov. 1, CZ publicly thanked the FBI, US Secret Service and Internal Revenue Service for helping trace and freeze cryptocurrency stolen during the attack. He suggested their quick response prevented a more severe Bitcoin selloff, and said many cryptocurrency investors underestimated the role US authorities played in stabilizing the market.
In a post on X, CZ wrote: "A tweet can't fully express our gratitude."
Binance previously confirmed that approximately $3 billion in stolen cryptocurrency had been frozen on-chain through cooperation with law enforcement, blockchain investigators and industry partners. However, frozen assets are not necessarily recovered assets, and efforts to retrieve the remaining funds are continuing.
FBI Identifies North Korean Hackers Behind Binance Attack
The FBI confirmed on Oct. 31 that North Korea was responsible for stealing more than $6 billion from Binance, and identified the operation as TraderTraitor, a state-sponsored hacking group associated with the Lazarus Group.
(Source: FBI)
Investigators revealed that the attackers were converting stolen cryptocurrency primarily into Ethereum, which could mean that they are preparing to launder the funds through decentralized finance platforms and instant cryptocurrency exchanges. The FBI urged cryptocurrency service providers to block transactions associated with addresses linked to the stolen assets.
Meanwhile, Binance's internal investigation uncovered multiple potential security breaches beyond an initially compromised employee laptop.
Binance Withdrawals Resume
Binance began restoring withdrawals on Nov. 1, and initially allowed access to Bitcoin, Ethereum and selected other cryptocurrencies. However, the reopening coincided with substantial customer withdrawals.
Approximately $3.64 billion was withdrawn, which represents around 2.1% of Binance's reported assets. Blockchain analytics platform DefiLlama estimated even larger outflows, although Binance disputed those figures.
The exchange insisted that withdrawal activity was stabilizing and substantial deposits were continuing.
Binance also announced that it had replaced approximately 95% of the stolen cryptocurrency using corporate funds, insurance resources and its Secure Asset Fund for Users (SAFU). The company pledged to absorb the financial impact rather than pass losses on to customers.
Despite these assurances, the massive security breach, ongoing investigation and significant withdrawals have placed Binance under intense scrutiny as it works to restore confidence in its platform.
