Binance Hit by Reported $6.3 Billion Hack: Why Freezing Stolen Crypto Is Only the First Step

Cryptocurrency exchange Binance was hacked, with an estimated impact of $6.3 billion. Around $3 billion in assets has been frozen so far. The exchange has pledged to cover all losses. Blockchain intelligence firm TRM Labs attributed the attack with high confidence to TraderTraitor, a North Korean state-sponsored hacking unit, based on on-chain and off-chain intelligence. The FBI previously identified the same group as responsible for the $1.5 billion Bybit hack in February 2025.

Freezing stolen funds is not the same as getting them back. Ari Redbord of TRM Labs, a former U.S. federal prosecutor, said a freeze stops money from moving, while recovery follows through a legal process. Law enforcement typically obtains a court order or seizure warrant before working with stablecoin issuers to release or reissue assets to their rightful owners. Stablecoins are the most recoverable asset class because the issuer controls the token contract.

Bitcoin and ether are harder, because no issuer can freeze them directly. Investigators must trace the funds across public blockchains and intervene when they reach a cooperating exchange or other centralised platform. Eric Jardine of Chainalysis said there is no standard recovery timeline: a technical freeze may happen quickly, but returning funds can take months or years.