Binance Replaced 90% of Assets Stolen in the $6.3B Binance Crypto Hack

Binance said on October 31 that it had replaced 90% of the assets stolen in a $6.3 billion crypto hack, using company funds to buy replacement tokens. The FBI attributed the Binance crypto hack to North Korea’s state-sponsored TraderTraitor unit, while the exchange kept withdrawals suspended and pledged that customers would bear no financial losses. Key takeaways The FBI identified TraderTraitor as responsible for the theft. Binance earmarked around $6.34 billion internally to cover losses. Less-liquid tokens account for the unreplaced 10%. A reserve snapshot covers 10 tokens at minimum 1:1 backing. How the Binance crypto hack bypassed approval controls Co-CEO Richard Teng said the attackers abused the multi-signature protocol EIP-7702 to obtain on-chain execution approval over a Binance hot wallet.

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