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Binance says hackers used a fake job interview to compromise an employee’s computer before exploiting an internal artificial intelligence tool to carry out unauthorized transactions in a $6.3 billion cryptocurrency heist.
The theft, which could rank among the largest financial heists in history, according to Reuters, has raised concerns about cybersecurity vulnerabilities at cryptocurrency exchanges and the growing role of AI in sophisticated attacks.
Binance said Tuesday that the breach highlighted the risks financial companies face as cybercriminals increasingly use AI to target corporate systems. The exchange said it plans to increase its investment in AI-powered threat detection and establish a security research fund, along with other initiatives involving leading AI companies.
The exchange said it has replenished approximately 90% of the stolen assets, covering about $6 billion of the estimated losses. Binance also said major cryptocurrencies, including bitcoin, ethereum, tether and BNB, remained fully backed.
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The company has pledged to absorb the financial impact of the breach rather than pass losses on to customers.
“Users will not bear the financial impact of this incident,” Binance previously said. “Binance will cover all losses.”
According to Binance, the attack began when hackers allegedly used a fraudulent job interview to compromise an employee’s computer, providing access to an internal service. The attackers then used the company’s AI tool to help execute unauthorized transactions.
Binance previously said the incident involved a compromised laptop belonging to a DevOps engineer. The computer may have allowed hackers to access a service container and submit unauthorized withdrawal requests.
Despite the unauthorized transactions, the exchange said it found no evidence that private key wallets were compromised.
Binance temporarily suspended deposits and withdrawals after disclosing the breach last week. The company said customer assets remained protected and that it would cover losses using its Secure Asset Fund for Users, or SAFU, and company funds.
Recovery efforts have also involved law enforcement agencies, cryptocurrency companies and blockchain analytics firms. The exchange said roughly $3 billion in assets had been frozen as investigators worked to trace the stolen funds.
Tether, Circle and Ripple also froze hundreds of millions of dollars in potentially affected assets.
The FBI attributed the theft to North Korean cyber activity it identifies as “TraderTraitor.” Federal investigators said the stolen cryptocurrency was being converted primarily into ethereum and could be moved through decentralized finance platforms and instant crypto exchanges to obscure its origin.
The scale of the attack has drawn attention to the financial risks associated with security breaches at major cryptocurrency platforms.
“This is one of the world’s greatest thefts of all time,” Eric Schiffer, chairman of Patriarch and Reputation Management Consultants, previously told FOX Business. “And it’s sad.”
The breach also weighed on cryptocurrency markets, with bitcoin, ethereum and BNB declining after Binance initially disclosed the incident, according to Reuters and CoinGecko data.
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The incident has intensified scrutiny of cryptocurrency exchange security and the potential for artificial intelligence to make cyberattacks more sophisticated, as Binance moves to strengthen its defenses and recover stolen assets.
FOX Business’ Michael Sinkewicz and Reuters contributed to this report.
