Binance says 90% of $6.3bn hack losses replaced as FBI blames North Korea
Cryptocurrency exchange Binance says it has replaced 90% of the funds taken in a record hack. The FBI confirmed that a North Korea-linked group called TraderTraitor was responsible.
Binance, a cryptocurrency exchange, said on Saturday that it has replaced 90% of the funds stolen in a record $6.3bn hack of its platform. The same day, the US Federal Bureau of Investigation (FBI) confirmed that the attack was carried out by TraderTraitor, a group affiliated with North Korea. The exchange is absorbing the losses itself, while investigators point to a state-backed cybercrime operation.
Covering the losses
In a post on X, Binance said the remaining 10% consists of less liquid tokens, which may take longer to buy. Co-CEO Richard Teng said the company was committed to covering that portion too and that users would not bear the financial impact.
The exchange had suspended user withdrawals, but said in its latest update that it expected to resume them on Sunday. It set aside about $6.34bn of company money for the losses. The tokens were bought back using part of its $1bn Secure Asset Fund for Users, a bitcoin reserve meant to protect customers during security breaches, along with some of its Futures Insurance Fund and the company's own treasury.
What is known about the attack
The FBI said North Korea was responsible for stealing more than $6bn in virtual assets on or about 29 October 2026. It said it had seen TraderTraitor actors convert the stolen assets into Ethereum and expected them to be laundered further through decentralised finance and instant swap services. The agency urged private-sector companies to block transactions involving addresses the group uses for laundering.
Teng said on Friday that the breach was a complex attack involving a compromised laptop and malicious software built to delete traces of its activity, making investigation harder. TraderTraitor is believed to be part of the Lazarus Group, which became notorious in 2014 when it was accused of hacking Sony Pictures.
Market reaction
After news of the hack, bitcoin fell nearly 5%, Ethereum almost 6%, and BNB, Binance's native token, nearly 10%. The attack came as some observers worry that increasingly capable artificial intelligence models could undermine cryptography and IT security. North Korea faces extensive international sanctions over its nuclear and missile programmes.
