Level 1 - Absolute Beginner
Binance is a very big crypto company. Many people keep money there. Now a lot of that money is gone.
Someone stole about 6.3 billion dollars. This is the biggest crypto theft ever. The theft took only about 20 minutes.
Binance stopped all deposits and withdrawals. People cannot take out money today. Binance says it will open again in 48 hours.
The thief used a laptop from a Binance worker. Binance says your money is safe. The price of Bitcoin fell.
- company
- a group of people who work and sell something together
- crypto
- money that exists only on computers
- stole
- took something that was not his or hers
- thief
- a person who steals
- laptop
- a small computer you can carry
- worker
- a person who has a job at a company
- price
- how much money something costs
- safe
- not in danger
Level 2 - Elementary
Binance is the world's largest cryptocurrency exchange. Late on Thursday October 29, someone broke into its computers and took crypto worth billions of dollars. Reuters put the figure at about 6.3 billion dollars. Most of the attack took only about 20 minutes.
At about 00:30 GMT on Friday October 30, Binance suspended all deposits and withdrawals. The company says it expects to restore withdrawals within 48 hours. Its early investigation points to a laptop that belongs to one of its own software engineers. The attacker used that computer to reach an internal system and take money out without permission.
Richard Teng, a co-chief executive, wrote on X: "Your money is safe and we're covering every loss." Companies that issue stablecoins were able to freeze about half of the stolen money. Tether froze about 1.57 billion dollars and Circle froze more than 800 million dollars. But frozen money is not the same as money that has come back.
Prices fell after the news. Bitcoin dropped about 5 percent to 76,368 dollars, a six week low. Binance's own BNB token fell to 709.70 dollars on CoinGecko. Two analytics firms, TRM Labs and Chainalysis, say they are highly confident that North Korea was behind the attack. No police agency has confirmed this, and Binance has blamed no one.
- exchange
- a place where people buy and sell money or shares
- suspend
- to stop something for a short time
- restore
- to make something work again
- engineer
- a person who builds machines or computer systems
- internal
- inside a company or a thing
- stablecoin
- a crypto coin that keeps the same value as a normal currency
- freeze
- to stop money from being moved
- confident
- sure that something is true
Level 3 - Intermediate
Binance, the world's largest cryptocurrency exchange, has confirmed a security breach in which roughly 6.3 billion dollars of crypto was stolen, a sum that would make it the largest crypto theft on record. The total is still disputed: Reuters put it at about 6.3 billion dollars, the analytics firm Chainalysis estimated about 5.9 billion, and TRM Labs said 6.36 billion. The bulk of the attack took around 20 minutes and began late on Thursday October 29, 2026.
Binance suspended all deposits and withdrawals at about 00:30 GMT on Friday October 30 and said it expects to restore withdrawals within 48 hours. Its preliminary investigation points to a compromised laptop belonging to one of its own software engineers, which gave the attacker access to an internal system and allowed unauthorized withdrawals. The company says it has found no evidence that wallet private keys leaked, and that its security team is "tracing the full attack path through the compromised computer." Co-chief executive Richard Teng wrote on X: "Your money is safe and we're covering every loss."
Issuers moved quickly and froze roughly half the proceeds. Tether froze about 1.57 billion dollars of USDT, according to its chief executive Paolo Ardoino; Circle froze more than 800 million dollars of USDC; Ripple about 200 million dollars; and World Liberty Financial 27 million dollars of stablecoins, plus about 2 million of its own token, through the custodian BitGo. Binance first said more than 2.5 billion dollars had been frozen, and later that about 3 billion had been located. Frozen, however, does not mean recovered, and the figures were still moving.
Attribution is where the accounts diverge. TRM Labs and Chainalysis both said they were highly confident North Korea was behind the attack, with TRM naming a hacking unit called TraderTraitor, linked to the Lazarus Group. No law enforcement agency has confirmed that, and Binance itself has attributed the attack to no one; Teng said the investigation "has not attributed responsibility to any individual." Markets took the news badly: Bitcoin fell about 5 percent to a six week low of 76,368 dollars, Ether to a two month low of about 2,178 dollars, and Coinbase, which said it was unaffected, still dropped 4.8 percent.
- breach
- a break into a protected system
- disputed
- not agreed on by everyone
- preliminary
- early and not yet finished
- compromised
- no longer secure because someone else has got into it
- unauthorized
- done without permission
- custodian
- a company that holds assets safely for someone else
- proceeds
- the money gained from an action or a sale
- attribution
- saying who is responsible for something
Level 4 - Advanced
A single compromised laptop appears to have cost the cryptocurrency industry more than any breach before it. Binance, the world's largest exchange, confirmed that roughly 6.3 billion dollars of crypto had been drained from its systems, most of it in a window of about 20 minutes that opened late on Thursday October 29. Estimates of the loss diverge, as they usually do in the hours after a theft of this scale: Reuters settled on about 6.3 billion dollars, Chainalysis on about 5.9 billion, and TRM Labs on 6.36 billion. On any of those numbers it stands as the largest crypto theft on record, roughly four times the 1.5 billion dollar Bybit theft of February 2025, which was also blamed on North Korea, and more than double the 2.9 billion that TRM counted across nearly 150 attacks in the whole of last year.
The mechanics, as Binance describes them, are mundane and therefore unsettling. A software engineer's computer was compromised; that access reached an internal system; the internal system authorised withdrawals it should never have permitted. The company says it has found no evidence that wallet private keys leaked, and that its security team is "tracing the full attack path through the compromised computer." Deposits and withdrawals were suspended at about 00:30 GMT on Friday, with a promise to restore them within 48 hours. Richard Teng, co-chief executive, offered the only assurance that matters to customers: "Your money is safe and we're covering every loss." Changpeng Zhao, the founder and largest shareholder who no longer runs the company, allowed that "it does look like a hack on Binance" and said he expects user funds to be recovered in full.
Stablecoin issuers, whose tokens can be frozen in a way bitcoin cannot, blunted the damage. Tether immobilised about 1.57 billion dollars of USDT, Circle more than 800 million of USDC, Ripple about 200 million, and World Liberty Financial 27 million of stablecoins plus some 2 million of its own token through the custodian BitGo. Binance put the frozen total above 2.5 billion dollars, then said about 3 billion had been located. The distinction between frozen and recovered is not pedantic, and the figures were still moving as the day went on. Set against the 162.8 billion dollars in assets under custody and 335 million registered users reported in the exchange's 2025 annual report, its dedicated insurance pool, the Secure Asset Fund for Users, holds roughly 1 billion dollars in bitcoin. Binance.US said it was not affected.
Attribution is the most consequential and least settled question. TRM Labs and Chainalysis each said they were highly confident North Korea was responsible, with TRM pointing to the unit it calls TraderTraitor, linked to the Lazarus Group; Ari Redbord, TRM's global head of policy, called the attack "unprecedented" and a "watershed," and warned that proceeds can finance weapons programmes. No law enforcement agency has endorsed that assessment, and Binance has blamed no one. Markets delivered a blunter verdict: bitcoin slid about 5 percent to a six week low of 76,368 dollars, ether fell to a two month low of about 2,178 dollars, Binance's BNB token dropped to 709.70 dollars on CoinGecko, and shares in Coinbase lost 4.8 percent even though the exchange said it was unaffected. Aravind Srinivasan of GSR called it "the biggest hack in history." Tim Sun of HashKey Group suggested the more durable effect may be on appetite for risk itself, and on the willingness of investors to leave their assets sitting on centralised exchanges at all.