The world's largest cryptocurrency exchange, Binance, has reported a major security incident in which digital assets worth approximately $6.3 billion have been impacted. The incident has been described as the largest cryptocurrency hack in history.
Binance confirmed the development on Thursday, stating that nearly half of the affected assets had already been frozen with assistance from other cryptocurrency platforms. The company also assured users that it would cover all losses resulting from the incident.
According to Binance, preliminary investigations suggest that the attack may have involved an engineer's compromised laptop. The security breach allegedly allowed an attacker to gain unauthorised access and withdraw digital assets.
The incident has raised fresh concerns about the security of cryptocurrency exchanges, with investigations underway to identify those responsible and recover the stolen funds.
AI-powered blockchain investigations company TRM Labs has attributed the attack to TraderTraitor, a hacking unit linked to North Korea.
In its report, the company said it had high confidence in this assessment. According to TRM Labs, several elements of the attack resemble previous cyberattacks linked to North Korean hackers, including the major security breach involving cryptocurrency exchange Bybit in 2025.
The Bybit attack resulted in the theft of approximately $1.5 billion in cryptocurrency and was considered a record-breaking incident at the time.
Ari Redbord, Chief Policy Officer at TRM Labs, described the Binance incident as a 'watershed moment' for the cryptocurrency industry. Speaking to the media, he said the scale of the attack was unlike anything the industry had witnessed before.
Redbord also warned that the attacker still holds a significant amount of the affected assets. This means efforts to trace the transactions, identify the individuals involved and recover the funds could take considerable time.
Binance has not directly confirmed any connection between the incident and North Korea. However, the company said it was working with law enforcement agencies to identify those responsible.
"We are working closely with our law enforcement partners to confirm the identity of these criminals and bring them to justice," Binance said.
Following the incident, other major cryptocurrency companies stepped in to help freeze assets potentially connected to the attack.
Tether and Circle announced that they had collectively frozen approximately $2.4 billion worth of assets linked to the incident.
Circle Chief Executive Jeremy Allaire said the company was closely monitoring reports of a potential security breach involving Binance. He confirmed that Circle had frozen more than $800 million in assets connected to the incident.
Circle is the issuer and co-creator of USDC, one of the world's largest cryptocurrencies backed by the US dollar.
Meanwhile, Tether Chief Executive Paolo Ardoino said his company had frozen approximately $1.6 billion in assets related to the potential Binance exchange hack.
"Protecting the industry and our partners is our main priority," Ardoino said.
World Liberty Financial, a cryptocurrency company linked to US President Donald Trump and his family, also said it had worked with its partners to freeze stolen funds.
Another major cryptocurrency exchange, Coinbase, confirmed that its platform was not affected by the incident. The company said it was monitoring the situation.
Binance co-chief executive Yi He thanked various cryptocurrency issuers and platforms for their assistance in freezing the affected assets.
She also announced that withdrawals had been temporarily disabled as a precautionary measure.
"Safety first: withdrawals are currently disabled until the environment is confirmed to be secure," she said.
The incident specifically concerns Binance.com, the company's main international trading platform. Binance.US, which provides cryptocurrency trading services specifically to American residents, clarified that its platform was not affected.
Several cryptocurrency industry observers had raised concerns about a possible security breach at Binance hours before the exchange officially confirmed the incident.
Founded in China in 2017, Binance allows users worldwide to buy, sell and trade digital currencies. The exchange is estimated to have more than 300 million registered users globally.
The company has also faced regulatory scrutiny in several countries over its operations. In 2024, Binance said it had more than $160 billion in assets under custody.
The incident also affected cryptocurrency markets, with major digital currencies recording sharp declines following reports of the security breach.
Bitcoin fell by more than 4% after the alerts emerged. Other major cryptocurrencies, including Ethereum and Solana, also witnessed significant price drops.
With investigations still underway, the focus remains on identifying the attackers, securing the affected assets and recovering the funds. Although several cryptocurrency platforms have helped freeze billions of dollars worth of assets, a significant amount remains in the attacker's possession.