CryptoTheft & exploitDeveloping
Starting at about 20:05 UTC on October 29, attackers moved funds out of Binance hot wallets on ten or eleven blockchains, depending on the tracker, most of it in under half an hour, with a second wave around 23:00 UTC. Binance estimates the loss at about $6.3 billion. TRM Labs counts $6.36 billion, Elliptic $6.43 billion and Chainalysis about $5.9 billion, so figures differ by method. It is about four times the Bybit theft of February 2025. Binance suspended deposits and withdrawals, says user funds are safe and says it will cover all losses from its SAFU reserve fund and company funds. Its preliminary account is that a compromised DevOps engineer's laptop let an attacker reach a service container and submit unauthorized withdrawals, and that it found no sign of a leaked private key. A full post-mortem has not been published. TRM and Elliptic say that on Ethereum the attacker used 50 pre-signed EIP-7702 authorizations to make a Binance hot wallet run attacker-controlled code, while on the other chains Binance wallets sent funds in ordinary signed transfers, which TRM reads as a compromise of Binance's signing infrastructure. Stablecoin issuers, Ripple, World Liberty Financial and the Arbitrum Security Council froze about $2.7 billion to $2.84 billion, according to TRM and Elliptic. The attacker still holds roughly $2.4 billion to $3.3 billion in assets that no issuer can freeze, and has been swapping and moving them. TRM attributes the theft to North Korea's TraderTraitor group with high confidence. Elliptic says North Korean involvement is likely but lists reasons for caution, including that the overlap with funds from the Bitget theft is small. On October 31 the FBI said North Korea was responsible for the theft of more than $6 billion on or about October 29, naming its TraderTraitor group (also tracked as Lazarus Group, Jade Sleet and APT38), and published 628 addresses for exchanges to block (608 Ethereum, 19 Bitcoin and 1 Solana). Binance has not itself named a culprit. Binance restarted withdrawals in phases on November 1 and added fiat withdrawals on November 2. It says it has replaced about 95% of the impacted amount with its own funds, up from 90%, and is buying the rest, mostly less-liquid tokens, on the market and over the counter. It says its post-incident report will follow the investigation. Chainalysis said on November 3 that it counts about $6.4 billion stolen and about $2.8 billion frozen, and assesses that TraderTraitor is responsible, partly because the stolen funds mixed on-chain with funds from last month's Bitget theft, which was attributed to North Korean actors. It says the attacker is moving funds among many addresses in a pattern that suggests automation.
Why it matters, what to do and sources
Why it matters
The attackers did not break cryptography. As in the Bybit theft, they got an exchange's own systems to sign transactions for them, and a single engineer's laptop is the reported starting point. Issuer freezes saved about 44% of the money, but ETH, bitcoin and XRP have no issuer that can freeze them.
What defenders can take from it
- Treat the laptops, containers and signing services around your wallets as the most valuable targets, and require independent approval for withdrawals.
- Alert on any wallet that suddenly runs contract code, a sign of an EIP-7702 delegation, and keep a tested way to revoke it.
- Exchanges and compliance teams: screen deposits against the attacker addresses that TRM and Elliptic have published.
- Customers: Binance says user funds are covered. Even so, keep only what you need for trading on any exchange.
- Ignore posts and screenshots promising a $150 compensation reward to Binance users. Binance says they are fake.
Sources