Binance, the world's largest crypto exchange, suffered what is described as the largest crypto theft in history on Thursday. According to CNBC, attackers stole digital assets worth about $6.3 billion from the exchange's hot wallets, the ones connected to the network and used for routine withdrawals. Research firm Elliptic puts the amount at $6.43 billion.
The FBI: North Korea
The FBI said North Korea was behind the attack and attributed it to a group known as TraderTraitor, part of the regime's hacking apparatus. According to the agency, the theft occurred on or about October 29. President Trump cast doubt on the attribution, saying "we don't know if it's North Korea". North Korea has been responsible for huge thefts before, including $1.5 billion from the Bybit exchange, and the money is believed to fund its weapons programs.
What happens to customers
Binance said it will absorb the loss rather than pass it to users, and has already restored backing for about 90% of the stolen assets. To be precise: that does not mean the money was recovered from the attackers, but that the exchange covered it from its own funds. Today (Sunday) the exchange began gradually restoring withdrawals, starting with Bitcoin and Ether.
The lesson
Even the world's largest exchange, with huge security budgets, is not immune. North Korean attacks on crypto companies often start with social engineering against employees, such as fake job offers. For individual users, the advice stands: don't keep large sums on an exchange, but in a wallet you control.
