Joe Tidy
Cyber correspondent

Image source, Getty Images

Binance co-CEO Richard Teng has posted a video on social media outlining the latest in the investigation into how the hack happened.

Teng says that the initial idea that hackers compromised Binance through a developer’s laptop is only part of the story.

"This was not carried out by one person. Our initial investigation suggested that the security incident may have involved a compromised laptop, however our subsequent investigation has uncovered additional points of breach,” he says.

Teng also describes how the hackers used sophisticated methods to hide their tracks. They used "a self-destruct mechanism that destroyed tooling and traces as they went, making it more difficult for us to trace and investigate”, he says.

Self-destructing traces is not that uncommon for skilled hackers and has been observed in many previous attacks.

Teng also confirms that the hackers used a new and controversial system to steal the coins.

By abusing something called "multi-signature protocol EIP-7702", the thieves were able to bypass the usual methods of verification used by the platform.

The transfers "did not pass through our normal approval controls”, Teng says.

But the full details about how the hack happened are still being figured out and Binance says it will update people - and the industry soon.

How could Binance be hacked if crypto is so secure?published at 15:23 GMT

15:23 GMT

Mitchell Labiak
Business reporter

One of the selling points of cryptocurrency is its security.

In short, the thinking is that you can use the blockchain - the cloud technology that underpins cryptocurrency - to create a publicly accessible list of every purchase and sale of cryptocurrency. And that ledger of transactions is impossible for any one person or computer to alter for their own ends.

And yet, here we are reckoning with the fallout from yet another massive crypto hack. So what’s going on?

The short version is that the blockchain wasn’t hacked. Rather, the exchange on which people trade cryptocurrency was hacked.

Because cryptocurrencies like Bitcoin cost so much money, many people choose to buy shares in a Bitcoin - or some other cryptocurrency - via an exchange. When people do this, the actual digital key to the cryptocurrency itself is held by the exchange, which is Binance in this case, on the costumer's behalf.

Purists would argue this undermines the whole philosophy of crypto as a decentralised currency that no single person can control. However, for those who are just looking to buy crypto in the hope its value will rise, exchanges are a handy shortcut.

That is, of course, until a massive issue like the Binance hack happens.

Image source, Bloomberg via Getty Images

More now from Binance co-CEO Richard Teng, who has released a video statement on X.

The attacker used a known multi-signature protocol EIP-7702 to obtain on-chain execution approval over a hot wallet, Teng says.

He says the delegation did not pass through the firm's normal approval controls, adding that this is why the withdrawal service needs to be paused so that investigations can be carried out.

Binance is rebuilding the withdrawal service and not switching it back until it "passes rigorous testing", Teng says, adding that Binance is "on track" to resume services within 40 hours.

The company is also conducting a full security review across the whole company, and completing the purchase of the remaining assets.

Binance will share a full proof-of-reserves report by Monday, he adds, and aim to give an initial view before that.

Liv McMahon
Technology reporter

After Binance said it was working with law enforcement following the hack, the US Federal Bureau of Investigation (FBI) has now commented.

The FBI has said in a statement it is "aware of the incident and is engaged with relevant public and private partners to understand the scope of the activity, evaluate potential impacts, and coordinate appropriate investigative steps".

Image source, Getty Images

Richard Teng, Binance's co-CEO, has posted an update on X, explaining that what was affected in this hack was Binance's own hot wallet.

He says many people are asking how Binance can prove individual's assets are not impacted.

"We never use any customer funds so they are not impacted," he says.

Teng explains that user assets are held under Binance established security architecture, and the vast majority sit in cold wallets and are only moved into a hot wallet when the user makes a withdrawal.

He also gives an update on the investigation, saying that it is ongoing and is believed to involve more than more person.

He adds that it is believed the hacker used a "self-destruct mechanism", that destroyed tooling and traces as it went, "making it more difficult for us to trace".

Laura Cress
Technology reporter

Image source, Getty Images

Binance has not published a list of affected customer accounts in its incident update.

It says the attack involved unauthorised withdrawal transactions, but it has found no evidence of wallet private keys being leaked.

Customers can use the official app or website to review their balances, transaction history and security notifications for any unusual activity.

If they do spot anything suspicious, they should log out of all sessions, review their security settings and change their password - using an authenticator app or passkey to receive security codes, rather than text messages.

However, it is important to note that an account showing no unusual activity does not guarantee that their funds were unaffected.

Natasha Booty
Live reporter

Image source, Getty Images

Cryptocurrency fans say the fact it's not controlled by any centralised financial institution brings with it privacy and financial freedom.

With the race now on to trace crypto funds stolen from Binance, investigators will be monitoring any instances where it's converted into conventional money, because that greater visibility as it enters the real-world financial system makes it a key opportunity to intervene.

Converting crypto into normal money is called off-ramping. The opposite process is called on-ramping.

This can be done via major service networks including Visa and Mastercard, or cryptocurrency exchanges such as Coinbase or Binance.

Off-ramps and on-ramps are important in part because they allow new users to adopt cryptocurrency, rather than keeping it a closed sphere.

Jack Burgess
Live reporter

Image source, Reuters

"Cyber warfare is very much a tool in North Korea’s arsenal," North Korean foreign policy expert Dr Edward Howell, from the University of Oxford, tells me.

The author of A New Axis of Upheaval: North Korea, Russia, China, Iran says that, as of the current day, "around 40 to 50% of North Korea’s weapons of mass destruction programmes is funded by cyber and crypto-currency warfare".

Howell says the North Korean regime will "do everything and anything it can to get cash".

"We’ve got to remember that North Korea basically has a state-run cyber warfare agency," he says, adding that the infamous Lazarus group - also known as TraderTraitor - "is likely behind this Binance attack".

North Korea has never admitted being behind the Lazarus Group, but in 2020 the US added North Koreans accused of being part of the Lazarus Group to its Cyber Most Wanted list.

This is the biggest hack in history and probably the biggest single theft of any kind, our cyber correspondent Joe Tidy says. He talks you through the key details in less than a minute - watch below:

It is difficult to get a sense of how many people worldwide own crypto, although it has attracted significant interest in recent years.

• Around 8% of adults in the UK own cryptoassets, according to the latest research from the Financial Conduct Authority in 2025
• Around 8.7% of the US population owns them, according to the Securities and Exchange Commission
• In the euro area, around 9.7% of people (or someone in their household) own cryptoassets, according to a 2024 survey of select countries carried out by the European Central Bank

Data from official sources is not readily available for all countries, including India and China.

It's also worth bearing in mind that some people have minimal exposure - just 'dabbling' for fun - while others invest more significant amounts.

Of course, not everyone who trades crypto will use Binance - the company which has been hacked.

It is, however, a significant player, describing itself as "the largest crypto exchange by trade volume" with an average daily volume of $95bn (£71bn). It is estimated to have more than 300 million registered users worldwide.

Binance has insisted user funds are safe, adding that it will cover all losses.

However, the impact of the incident goes beyond just those who use the platform, with the Bitcoin price having dropped by around 5%.

Joe Tidy
Cyber correspondent

All eyes are on the value of Bitcoin. The famous green or red line dictating how much a single bitcoin is worth acts like a barometer for how healthy the entire industry is.

And right now it is holding up, only losing $3,000 (£2,200) since it started falling from $80,000 (£59,700) when the hack was announced.

Some are saying this shows how resilient bitcoin has become. Previous hacks and major events have seen the coin value tank.

However, it's important to note that Binance, and some other exchanges and networks, have frozen all trading whilst they deal with the hack.

So it remains to be seen how the value will go once people are able to actually buy or sell their crypto.

Liv McMahon
Technology reporter

Image source, Getty Images

This isn't the first time Binance has been hacked, or had to suspend withdrawals - it's had to do that several times before and in various markets in response to impacts on its operations or regulatory decisions.

The world’s largest crypto exchange disclosed a “large scale” breach in May 2019 after hackers stole cryptocurrency then valued at $41m (£31m).

Binance said hackers stole 7,000 bitcoins in one go - now worth around $400m - and it suspended withdrawals for several days.

It said the attackers had used a variety of techniques to break in - including viruses and phishing attacks to access security information - and it begged users for their understanding.

The exchange also pledged to replace lost cash with the help of its Secure Asset Fund for Users (Safu) – an emergency insurance fund.

Binance has taken similar actions and made similar pledges to users today, after suffering what may be the largest-ever hack of its kind.

Tara Mewawalla
Live reporter

Image source, Getty Images

The world's biggest crypto exchange Binance says it has "begun recovering affected assets for users", after it was hit by what is thought to be the biggest hack in history.

Cryptocurrency worth $6.3bn (£4.7bn) was stolen in the mega-hack, and trading on platform Binance Alpha was temporarily suspended last night - read a timeline of Binance's response here.

In its latest update, the firm reiterated that it has committed to cover losses through company funds, and says it has reserved over $6.3bn (£4.7bn) to cover the incident.

It said frozen or protected assets remain subject to ongoing recovery and verification. Earlier, it said $3bn (£2.24bn) had already been frozen.

The initial investigation suggests the incident may have begun with a "compromised DevOps engineer's laptop", Richard Teng, Binance's co chief executive says, but adds that it's a "complex attack".

We don't know who is behind the attack but analysts have pointed to North Korean hacking unit TraderTraitor. Why North Korea? Crypto theft is a big money-maker for the regime, our Japan correspondent writes.

Binance says it is working with law enforcement to find the criminals, though our senior technology reporter Shiona McCallum says investigators' efforts to follow the money could take months.

How did the attack happen? What is Binance? Our live reporter answers the seven major questions in our earlier post.

Liv McMahon
Technology reporter

Image source, Getty Images

The UK’s financial regulator, the Financial Conduct Authority (FCA), says it is aware of the Binance hack.

“While Binance wasn't registered with the FCA to provide crypto services in UK, we’re aware of the reported incident and engaging with them to understand the impact,” a FCA spokesperson says in a statement.

The FCA doesn’t regulate cryptocurrencies in the same way it does traditional finance products.

But firms and exchanges which advertise or sell crypto-assets must comply with some of its rules.

In 2021 it warned it had imposed requirements on Binance’s UK arm and, as such, Binance could not carry out any “regulated activity” without FCA approval.

Binance is not registered or authorised with the FCA and stopped accepting new UK retail customers in 2023. But existing users still access some services via its global platform.

Crypto theft is a big money-maker for North Korean regimepublished at 12:11 GMT

12:11 GMT

Kurumi Mori
Japan correspondent

Image source, EPA/Shutterstock

Several blockchain insiders and analysts are pointing the finger at Pyongyang-linked groups for the hack.

Remember, North Korean state-sponsored cyber crimes have increasingly focused on big-scale crypto thefts over the past years.

The regime has been repeatedly been accused of using cryptocurrency theft to generate revenue to help fund its weapons programmes.

In 2025, North Korean hackers are believed to have stolen at least $2.02bn (£1.5bn) in cryptocurrency, according to experts. Crypto theft is likely one of its biggest money-makers.

So if the losses are confirmed, this would be an unprecedented case when it comes to the sheer scale of cryptocurrency theft we've seen, and would also pressure the industry to step up its defences against future hacks.

For even more on the North Korea link, BBC World Service's podcast Cyber Hack: The Lazarus Heist dives deep into the secretive nation's sponsorship of hacking.

Liv McMahon
Technology reporter

Image source, Getty Images

Cryptocurrencies are digital currencies which, unlike the British pound, US dollar and Euro, are not controlled by centralised financial institutions. Fans call this difference financial freedom, but crypto is typically acquired through exchanges, like Binance, and can be regulated or unregulated depending on where you live.

Digital currencies and assets are underpinned by blockchains – technology which records and accounts for transactions of a virtual currency on a shared digital ledger. Transactions are arranged as blocks linked together in a giant chain (hence the name).

Bitcoin is the largest and most popular cryptocurrency.

New coins are created through a process called mining, whereby a global network of miners use specialised computers capable of solving complex calculations to verify transactions to add them to its blockchain. Those that do so successfully are rewarded with Bitcoin. But unlike other popular cryptocurrencies such as Ethereum, Bitcoin’s supply is capped – and eventually no further Bitcoins will be able to be created.

Because of this scarcity, many fans and investors consider it to be a particularly valuable digital asset and immune to traditional market activity. But its price can plummet as quickly as it can skyrocket, and its fluctuations often trigger a domino effect across the crypto market more broadly.

See our explainer for more meanings of key crypto terms.

Jacob Phillips
Live reporter

In our last post, we explained that it could take months for investigators to follow the money. We can bring you a bit more now on what the hackers are likely to do next.

A cyber-security expert says that Binance has already stopped around half of the money involved in the hack from being moved again but it is "unlikely" to physically get back the rest of the funds.

Earlier the company said it had managed to freeze around $3bn (£2.24bn) of assets.

Jake Moore, Global Cybersecurity Advisor at software company ESET, tells me the cyber attackers will be "trying to create red herrings" and turn the stolen funds into other cryptocurrencies through a process called "washing".

He tells me the attackers will be transferring the money thousands of times using different techniques to disguise the funds and make it impossible to trace.

"[The cyber attackers will be] spending the next year or so trying to lose that trail," he says. "Once they are confident the trail has been lost they will pop it out somewhere and it can be used - in their eyes - legitimately."

Moore says law enforcement's best chance of finding the funds will be if it is turned into normal currency, even if this is years later.

He explains there have been stories in the past of cyber attackers being caught three or four years after a crime when cryptocurrency is turned into sterling.

Moore says this is the "best chance" that it can be attributed to those who had it.

Following the stolen money could take monthspublished at 11:34 GMT

11:34 GMT

Shiona McCallum
Senior technology reporter

This theft may have happened quickly, but efforts to recover the cryptocurrency could continue for much longer.

Joe Hancock, head of cyber risk and complex investigations at law firm Mishcon de Reya, says he expects a prolonged laundering process: "Laundering will likely take place over weeks or months if not longer.

"Assets that can be frozen will be disposed of first, followed by a potential consolidation into Bitcoin and a movement off chain via a range of brokers or underground banking."

The public transaction records may help investigators follow the money, but tracing it and recovering it remain separate challenges.

"Crypto is a big target for hackers. The nature of crypto as an electronic currency makes these kind of transfers easier to execute and hard to reverse. It’s also hard to recover funds unless it hits an off-ramp from the crypto ecosystem such as an exchange," Hancock said.

An off-ramp is a service through which cryptocurrency can be converted into conventional money (such as pounds, dollars, or euros) and transfers the cash into the real-world financial system. Such services can offer investigators an opportunity to intervene.

Meanwhile, Binance’s promise to reimburse customers creates a separate financial test. Frozen assets still need to be returned, and any money that cannot be recovered must be replaced.

Confidence will depend on Binance demonstrating that it has met those obligations and that customers can actually withdraw.

Joe Tidy
Cyber correspondent

A lot of the fear right now from Binance users - and the crypto industry at large - is whether or not Binance will actually be capable of covering this enormous financial loss.

The company has said repeatedly that customer funds will be covered and that the firm is strong enough to weather the storm.

But crypto history watchers have been pointing out online that this is exactly the kind of message that FTX CEO Sam Bankman-Fried gave before his crypto exchange collapsed in 2022, leading to huge losses for customers and the industry.

Elon Musk replied to someone making this point on X with a worried face emoji.

But Binance founder Changpeng Zhao, known widely by his initials CZ, fired back at the billionaire and former Bitcoin fan saying: "Elon, have a lot of respect for you, but bad time to troll. Please stop."

CZ added that Binance helped Musk buy Twitter with $500m and said that Binance’s investment alone is worth more than a billion dollars.

"Would appreciate if you show a little support. Thanks!”

Musk has not replied.

Image source, X

More now from Binance's latest update.

The firm reiterates that it has "already publicly committed to cover losses through company funds".

It says it has already reserved over $6.3bn (£4.7bn) - the same amount that was stolen in the hack - to cover this incident, Binance says $5bn of these funds "already held in the exact token assets that were impacted".

It says it is completing the purchase of the remaining amount by buying assets through various channels. "This step can take longer," it says, adding that it will share progress "as soon as we can".

It explains that these figures do not include frozen assets, which "remain subject to ongoing recovery and verification".

Earlier, it said $3bn had been frozen.