#BinanceIncidentReport #BinanceReopensWithdrawalsForMoreAssets đ¨ The Biggest Hack in Crypto History: $6.36 Billion Vanishes from Binance
The timeline is wild. On Thursday, October 29, around 20:05 UTC, hackers drained Binanceâs hot wallets across 10 blockchainsâwith most of the funds leaving in just ~20 minutes. The total was around $6.36 billion (according to TRM Labs), ~4x the $1.5 billion Bybit hack last year.
Who did it? The FBI (October 31) accused TraderTraitor, a North Korean-sponsored hacking group, and released 628 related wallet addresses (608 ETH, 19 BTC, 1 SOL) for the crypto industry to block. North Korea denied the allegation in a statement by Kim Yo Jong. Binance itself has not confirmed the attribution or disclosed the root cause.
Binanceâs response so far:
â Promised to cover all user losses (from SAFU + company funds)
â ~95% of the lost funds have been replaced
â Withdrawals gradually reopened starting November 1âwith net outflows of ~$4.7 billion, just ~3% of the platformâs assets
And yesterdayâs update, November 3, caused a stir: Arbitrumâs Security Council moved ~$30 million in hack proceeds (8,425 ETH + 74 million ARB) WITHOUT the hackerâs private key. How? It used its emergency upgrade power (9 of 12 members) to temporarily change Arbitrum Inbox code, add a sendUnsignedTransactionOverride function, then restore the code in the same transaction. The funds are now in a holding address and can only be moved through an ArbitrumDAO governance vote.
Was this a rescue... or proof that âdecentralizationâ has its limits? Because the fact is: whoever controls the upgrade path can make any address move funds.
A lesson for us: donât keep all your assets on one exchange, move long-term holdings to a cold wallet, and watch out for phishing that takes advantage of moments like this.
Do you think Arbitrumâs move was heroic or dangerous? Comment below đ
$BNB $ARB
The timeline is wild. On Thursday, October 29, around 20:05 UTC, hackers drained Binanceâs hot wallets across 10 blockchainsâwith most of the funds leaving in just ~20 minutes. The total was around $6.36 billion (according to TRM Labs), ~4x the $1.5 billion Bybit hack last year.
Who did it? The FBI (October 31) accused TraderTraitor, a North Korean-sponsored hacking group, and released 628 related wallet addresses (608 ETH, 19 BTC, 1 SOL) for the crypto industry to block. North Korea denied the allegation in a statement by Kim Yo Jong. Binance itself has not confirmed the attribution or disclosed the root cause.
Binanceâs response so far:
â Promised to cover all user losses (from SAFU + company funds)
â ~95% of the lost funds have been replaced
â Withdrawals gradually reopened starting November 1âwith net outflows of ~$4.7 billion, just ~3% of the platformâs assets
And yesterdayâs update, November 3, caused a stir: Arbitrumâs Security Council moved ~$30 million in hack proceeds (8,425 ETH + 74 million ARB) WITHOUT the hackerâs private key. How? It used its emergency upgrade power (9 of 12 members) to temporarily change Arbitrum Inbox code, add a sendUnsignedTransactionOverride function, then restore the code in the same transaction. The funds are now in a holding address and can only be moved through an ArbitrumDAO governance vote.
Was this a rescue... or proof that âdecentralizationâ has its limits? Because the fact is: whoever controls the upgrade path can make any address move funds.
A lesson for us: donât keep all your assets on one exchange, move long-term holdings to a cold wallet, and watch out for phishing that takes advantage of moments like this.
Do you think Arbitrumâs move was heroic or dangerous? Comment below đ
$BNB $ARB