Binance Hit by Record $6.3 Billion Crypto Hack

Hackers stole $6.3B from crypto giant Binance. The exchange froze $3B, set aside funds to cover losses, and is working with the FBI.

One of the biggest crypto thefts ever has just happened. Binance, the world's largest cryptocurrency exchange (a platform where people buy, sell, and store digital coins), was hacked for a record $6.3 billion.

Here's what we know so far:

Hackers broke into one of Binance's "hot wallets" (a digital wallet connected to the internet, used for quick transactions but more vulnerable to attacks).
Binance quickly paused withdrawals to stop more money from leaving.
About $3 billion of the stolen funds have been frozen, meaning that money can't be moved by the thieves.

How did the attackers get in? Co-CEO Richard Teng said this was a complex attack, not a simple one-click theft. The hackers exploited a recent Ethereum upgrade called EIP-7702 (a technical change to the Ethereum blockchain) to take control of a wallet and bypass Binance's normal security approvals. They even used a "self-destruct mechanism" to erase their tools and hide their tracks.

Can users get their money back? Binance says yes. The exchange has:

Set aside more than $6.34 billion of its own money to cover the losses.
Already held $5 billion in the same types of coins that were stolen.
Started buying the remaining coins through market and OTC (over-the-counter) deals — private trades done directly between two parties.

Binance is also working with the FBI and blockchain tracking firms to recover more funds. Analysts at Chainalysis said the thieves are using automation (computer programs) to rapidly move money through thousands of transactions, making it harder to trace.

What's next? Binance aims to resume withdrawals within 40 hours and publish a full proof-of-reserves report (public proof that the exchange holds enough money to cover all customer funds) by Monday.

Bottom line: While this is the largest crypto hack on record, Binance says it has enough money to fully cover customer losses — but the investigation is still ongoing.

This is an AI-generated summary. Read the original article at: https://cointelegraph.com/news/live-updates-binance-63b-hack-linked-to-north-koreas-tradertraitor?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound