Binance Loses $6.3 Billion in Suspected North Korea Hack

Binance, the world's largest crypto exchange by trade volume, lost an estimated $6.3 billion in bitcoin and other digital currencies to hackers on Thursday. The attack is believed to be the largest crypto heist on record.

TRM Labs, a U.S. blockchain intelligence firm, said the theft was likely carried out by TraderTraitor, a North Korean hacking unit. North Korea has repeatedly turned to crypto to obtain foreign currency amid a push to develop nuclear weapons, experts say. A South Korean spy agency considers crypto hackers north of the DMZ line among the best in the world.

Binance said Friday it is starting to return money to users. The company is working with blockchain partners to freeze roughly $3 billion in affected assets. Changpeng Zhao, the company's founder, posted on X that "User funds are safe!"

Zhao, a billionaire, founded Binance in 2017. He set up the company in China before moving it to Japan after a crypto crackdown. The business then relocated several more times, with plans to expand in Jersey and Malta. It operates online and does not maintain a headquarters.

The exchange has faced accusations for years that it turned a blind eye as its platform was used by drug traffickers, child abusers, terrorists and money launderers. Alleged violations included allowing trades worth hundreds of millions of dollars between U.S. users and users in Iran, breaking sanctions, and failing to report suspicious transactions involving Hamas' Al-Qassam Brigades and al-Qaida.

Regulators under the Biden administration targeted Binance for operating unregistered securities exchanges. Zhao pleaded guilty in 2024 to violating the Bank Secrecy Act, which requires U.S. financial institutions to know their customers' identities and report suspicious activity. He became the first person sentenced to prison under the law. Zhao stepped down as CEO and spent four months in jail.

President Donald Trump pardoned Zhao in October last year, saying his predecessor had treated him unfairly and that he would stop attacks on the industry, which he calls a priority for the U.S. Trump received millions of dollars in campaign donations and funds for his 2025 inauguration from crypto sources. Binance and Zhao have also supported Trump family crypto ventures, including World Liberty Financial.

Binance has denied any connection between its help and the pardon. "Any claim of a quid pro quo by Binance or CZ, or preferential financial treatment by Binance, is a clear misstatement of the public record," attorney Teresa Goody Guillen said in an email earlier this year.

Forbes estimates Zhao's net worth at more than $100 billion. He previously worked at McDonald's in Canada after moving there with his family from China.