Binance suffers cyberattack, with $6.3 billion reportedly stolen

A cyberattack on cryptocurrency giant Binance has resulted in the theft of $6.3 billion.

The company has confirmed the incident, which could be the largest heist of its kind in the history of the cryptocurrency market. Binance suspects the attack was carried out by hackers backed by the North Korean state; meanwhile, around $3 billion has been frozen.

According to preliminary investigation findings, the perpetrators carried out unauthorized transactions after gaining access to a compromised laptop belonging to one of the company’s engineers. Following the incident, Binance temporarily suspended all deposits and withdrawals.

Binance said it would cover all financial losses and that users’ funds are safe.

“Our teams are working around the clock to resolve this matter safely and completely,” the company said in a statement to Qatar’s Al Jazeera television network.

The company is cooperating with law enforcement authorities to identify those responsible and bring them to justice. Binance said it would publish a detailed technical report on how the attack was carried out once the investigation is complete.

Meanwhile, blockchain intelligence firm TRM assesses with “high confidence” that the attack was carried out by the TraderTraitor hacker unit, which is linked to North Korea and the well-known Lazarus group.

The unprecedented incident is being seen as a turning point for security in the cryptocurrency market. The stolen funds could be used to finance weapons programs and other destabilizing activities, turning the matter into a global security concern beyond a financial theft.

The news sparked an immediate reaction in cryptocurrency markets. Bitcoin, the world’s most widely used digital currency, fell by around 5 percent, dropping below $77,000.