Binance Hack: $6.3 Billion Damage and Market Reaction

Binance confirmed the scale of the hack, estimating total damages at $6.3 billion. The platform will compensate all user losses and promises to restore withdrawal operations within 48 hours.

Attack Mechanism and Culprits

Initial investigations point to the compromise of an IT department employee's laptop. TRM Labs experts highly associate the attack with the TraderTraitor hacker group, which has ties to North Korea. The likely vulnerability involved guessing EIP-7702 authorizations through transaction signing infrastructure.

Hackers distributed the stolen 18,270 BTC across nearly two dozen wallets. The stolen funds were also mixed with assets previously stolen from Bitget exchange, indicating the involvement of the same group of attackers.

Market and Blockchain Network Response

In the Arbitrum network, 74.5 million ARB tokens and 8,425 ETH were frozen thanks to a temporary contract update for inbox. In the AAVE protocol, 19,762 wETH were extracted, totaling $45 million. There are no liquidity risks: repayments and withdrawals are functioning, but new operations are blocked.

Major companies such as Tether, Circle, Ripple, and World Liberty Financial were involved in freezing the assets. Binance leadership assures users of the safety of their funds and thanks them for their patience.