The Federal Bureau of Investigation accused North Korea of stealing $6.3 billion in virtual assets from Binance around Thursday, October 29, 2026, according to official reports. The cyberattack targeted the world’s largest cryptocurrency exchange in what officials described as a complex breach of digital assets.
Federal Bureau of Investigation Points to TraderTraitor Group
In an official statement, the FBI attributed the malicious cyber activity to a hacking collective known as TraderTraitor. The agency stated that actors associated with the group convert stolen assets primarily into Ethereum. Federal investigators expect the suspects to attempt further laundering by routing the funds through decentralized finance services and instant exchange platforms.
The FBI is releasing information advising the Democratic People's Republic of Korea (North Korea) was responsible for the theft of more than $6 billion USD in virtual assets from cryptocurrency exchange, Binance, on or about October 29, 2026. The FBI refers to this specific North… pic.twitter.com/TBUvUFln4n
According to the Cybersecurity and Infrastructure Security Agency, TraderTraitor operates as a state-sponsored North Korean hacking unit targeting the cryptocurrency sector, a campaign active since at least 2020. United States cybersecurity officials link the activity to the Lazarus Group, which has previously deployed spearphishing and malware against digital asset platforms.
Binance Responds to the Security Breach
Following the breach, Binance temporarily suspended deposits and withdrawals while conducting security checks and freezing affected funds. Initial company investigations indicate that attackers compromised the laptop of an operations engineer, using it to access an internal system and execute unauthorized withdrawals.
The platform worked with blockchain partners to freeze approximately $3 billion in affected assets. Company representatives stated that user funds remain secure and that Binance will cover all losses resulting from the hack using its user protection fund, known as SAFU, alongside internal resources.
Withdrawals have resumed in phases as the company covers the majority of the missing funds. Platform administrators noted that recompurchasing the remaining 10 percent of tokens, which they classified as less liquid, could require additional time.
Market Reaction and Corporate History
The theft triggered immediate declines across digital asset markets. Bitcoin dropped more than three percent to trade near $77,400, while Ethereum and Binance Coin also recorded losses, according to data from CoinDesk.
Founded in Shanghai in 2017 by Changpeng Zhao, Binance relocated its operations outside China following regulatory restrictions on cryptocurrency trading. The company currently operates internationally without a single fixed headquarters, though it maintains operations based in Malta. The company has previously been involved in several scandals, including a 2023 conviction by United States authorities requiring a $4.3 billion fine for violating anti-money laundering laws, and a 2021 order from the British financial regulator halting activity in the United Kingdom. Founder Changpeng Zhao paid more than $800,000 to a lobbyist to secure a pardon from Trump, which was granted in October of last year, according to an investigation by the Wall Street Journal.
Keep reading
