Binance has said it has covered 90% of the losses from Thursdayโs (October 29) $6.3 billion hack. The platform will cover the remaining 10% after it sources the required funds.
The hack was the largest in history, sending shockwaves through the crypto ecosystem and leaving Bitcoin (BTC) and other altcoins reeling.
Binance Covers Losses From Hack
Binance has reiterated its pledge to cover all losses arising from what is being called the largest hack in crypto history, and has created a $6.34 billion war chest to address the financial impact on users.
โBinance will absorb the financial impact of these stolen funds, not our users.โ
Binance suspended deposit and withdrawal services in the aftermath of the exploit. It issued an update on Sunday that withdrawals had been restored on some networks and would resume on remaining networks in a phased manner.
The Federal Bureau of Investigation (FBI) held North Korea responsible for the exploit. The agency also said the stolen assets had been converted to Ethereum (ETH), and expects more conversions as the funds are laundered through decentralized finance (DeFi) and instant swap services.
The North Korean Hand
Blockchain analytics firms, including TRM Labs and Chainalysis, believe North Korean-backed hacker groups were behind the exploit. Experts have long accused the North Korean government under Kim Jong Un of using cybercrime and major crypto exploits to finance its nuclear programme, an accusation Pyongyang vehemently denies.
The North Korean regime was also responsible for the $1.5 billion Bybit exchange hack. The hackers quickly laundered the stolen funds following the exploit, converting them into various cryptocurrencies and routing them through DeFi protocols, swap services, and bridges. North Korea has developed a strong cyberwarfare operation, overseen by its intelligence agencies.
How The Exploit Played Out
Binance initially stated that hackers compromised an engineerโs laptop to gain access and conduct unauthorized withdrawals. However, investigations revealed a wider exploit involving multiple breaches. Binance co-CEO Richard Teng confirmed the findings, stating,
โOur subsequent investigation has uncovered additional points of breach.โ
A Binance spokesperson said the exchange had secured 80% of the stolen assets, but 20% remained unaccounted for. The hack also demonstrates the sophistication and capabilities of North Korean threat actors. Artificial intelligence has added to the capabilities of hackers. Experts believe the hackers may have used AI to compromise and infiltrate Binanceโs security systems. Chainalysis went on record to state that the hackers had used laundering patterns not seen in previous exploits.
FBI Urges Private Sector Cooperation
The FBI has also urged private sector entities to block transactions associated with the North Korean hackers. The agency provided a full list of addresses being used to launder the stolen funds in its press release.
North Korean hackers were responsible for about 60% of value lost in crypto hacks in 2025, according to a report by CertiK. The proceeds are used to fund the countryโs nuclear program.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
