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Binance is the biggest cryptocurrency exchange
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The world’s largest cryptocurrency exchange Binance has been hit with the world’s biggest ever cryptocurrency heist – with billions of dollars of reserves drained in just 20 minutes.
At 8:05pm on October 29, $6.36 billion worth of cryptocurrencies were shifted from wallets in a coordinated attack believed to have originated from a North Korean-linked hacking group called TraderTraitor. TraderTraitor was also behind a $1.5 billion hack of the Bybit crypto exchange in February 2025.
The US Treasury has previously said that such stolen funds are used to finance North Korea’s nuclear missile programme.
Despite the founding cryptocurrency idea of decentralisation, meaning no one has singular control over the money flowing through the network, there are some large single points of failure. And it’s believed one of those was the cause of the hack, which gave access to a system Binance uses to authorise transfers out of customers’ accounts.
In a statement, Binance said its early investigations suggest the security incident may stem from a compromised laptop belonging to an engineer. TRM Labs, a cybersecurity firm, suggests that preparations for the attack may have begun several days ago.
The company claimed it has found no evidence to suggest the private cryptographic keys used to authorise transactions were stolen. Instead, the attackers appear to have gained access to the software that requests withdrawals, potentially allowing them to instruct Binance’s own systems to approve the transfers. However, the investigation is continuing and the firm has said in a subsequent statement there may have been “additional points of breach”.
“It shouldn’t be possible for a single [developer] PC to be compromised and somehow for that to allow the entire exchange to be compromised,” says Alan Woodward at the University of Surrey, UK. “I don’t understand how that can happen unless they’ve got the most ridiculous operational security.”
If that is the case, it highlights how precarious major financial hubs in the crypto world such as Binance can be to single points of failure.
“You can build a vault with mathematical firewalls, but if the individual holding the keys can be duped, the vault is opened,” says Clive Summerfield of FARx, a cybersecurity company. “Most crypto platforms are as centralised as any bank, with a small number of privileged individuals controlling billions. The difference is that once crypto is transferred, it’s gone.”
However, that centralisation can be a blessing as well as a curse: cryptocurrencies Tether and Circle have been able to freeze billions of dollars of stolen coins, stymying the hackers in attempts to transfer about half the funds stolen any further.
Woodward says that the Binance incident potentially strikes a distinction between crypto security and more traditional finance. “You would hope there’d be things like two-man rules [where two separate people have to approve a change] or things that banks have for changing critical systems, but it doesn’t look like those were in place,” he says.
English (US) 