Binance Covers $5.7 Billion of Hacker Losses as FBI Blames North Korea

Binance has replaced 90 percent of the $6.3 billion stolen in one of the largest cryptocurrency hacks in history. The exchange stated on Saturday that it has used its own capital to repurchase the bulk of the lost tokens. The remaining 10 percent consists of assets that are less liquid, a factor that may delay their full recovery.

The breach occurred on October 29, 2026. Co-chief executive Richard Teng described the incident as a complex attack involving a compromised laptop and malware designed to wipe digital traces. Binance suspended user withdrawals immediately after the intrusion. The company announced on Sunday that withdrawals would resume in phases to maintain system stability.

The Federal Bureau of Investigation confirmed on Saturday that a North Korea-affiliated group called TraderTraitor orchestrated the theft. The agency identified the group as part of the Lazarus Group, known for the 2014 hack of Sony Pictures. The FBI stated that North Korea was responsible for stealing more than $6 billion in virtual assets. Investigators observed TraderTraitor actors converting the stolen funds into ethereum. The bureau urged private sector entities to block transactions linked to the group's laundering addresses.

Binance set aside approximately $6.34 billion in company funds to cover the incident. The exchange drew on its $1 billion Secure Asset Fund for Users, a bitcoin reserve intended to protect customers during security breaches. It also utilized portions of its Futures Insurance Fund and corporate treasury. Teng stated that users would not bear the financial impact of the incident. The company affirmed its commitment to covering the remaining 10 percent of the loss.

Market prices reacted sharply to the news. Bitcoin fell nearly 5 percent following the announcement. Ethereum dropped nearly 6 percent, while BNB, the token native to Binance, tumbled nearly 10 percent. The scale of the theft has intensified scrutiny of North Korea's ability to generate revenue despite international sanctions on its nuclear and missile programs.