Cryptocurrency giant Binance says it has replaced most of the assets stolen in the largest digital currency theft on record, while the FBI identifies North Korean state-sponsored hacking group TraderTraitor as responsible. Withdrawals are expected to resume on Sunday as the exchange works to restore customer confidence.
Massive cryptocurrency theft shakes global markets
Binance, the world’s largest cryptocurrency exchange by trading volume, has announced that it has replenished 90% of the $6.3 billion stolen during a sophisticated cyberattack on 29 October.
The company subsequently raised that figure to 95% on Sunday, 1 November, as it prepared to reopen withdrawals in stages.
Co-chief executive Richard Teng confirmed that Binance would absorb the financial impact rather than pass losses on to customers.
The exchange has allocated approximately $6.34 billion to replace stolen assets, drawing on corporate reserves, its Secure Asset Fund for Users (SAFU) and its Futures Insurance Fund.
FBI identifies North Korean hackers
The US Federal Bureau of Investigation has attributed the attack to TraderTraitor, a North Korean state-sponsored cybercrime operation believed to be associated with the notorious Lazarus Group.
According to investigators, the hackers have already begun converting stolen cryptocurrency into Ethereum, potentially preparing the funds for further laundering through decentralised finance platforms and instant exchange services.
The FBI has urged cryptocurrency businesses to identify and block transactions involving digital wallets associated with the stolen assets.
The attack reportedly involved a compromised laptop and malicious software designed to erase evidence, complicating efforts to reconstruct the breach.
Withdrawals gradually resume
Binance announced plans to restart withdrawals on Sunday, initially covering 15 cryptocurrencies, including Bitcoin, Ethereum and XRP.
The exchange also introduced additional proof-of-reserves checks intended to demonstrate that customer holdings remain adequately backed.
Despite these reassurances, the breach triggered significant market volatility. Bitcoin declined approximately 5%, Ethereum lost nearly 6%, and Binance’s native token, BNB, fell close to 10% following the initial reports.
Security concerns extend beyond Binance
The incident highlights the increasing sophistication of state-sponsored cybercrime and the vulnerability of cryptocurrency infrastructure to coordinated attacks.
North Korea has repeatedly been accused of using cryptocurrency theft to generate revenue despite international sanctions.
Although Binance has committed to covering customer losses, the unprecedented scale of the attack raises fundamental questions about security standards, operational resilience and regulatory oversight across the global digital asset industry.
NewsHub Finance | Cryptocurrency | 1 November 2026
Cryptocurrency giant Binance says it has replaced most of the assets stolen in the largest digital currency theft on record, while the FBI identifies North Korean state-sponsored hacking group TraderTraitor as responsible. Withdrawals are expected to resume on Sunday as the exchange works to restore customer confidence.
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