Binance loses billions in North Korean social engineering attack

Binance confirmed that a sophisticated social engineering attack resulted in the theft of billions of dollars from its online wallets. The FBI attributed the intrusion to a North Korean group that lured a Binance developer into a fake job interview, convincing them to download malicious software onto their work laptop. This initial compromise provided attackers with a foothold to infiltrate the network over several months, allowing them to sign wallet transactions using internal infrastructure. Reports on the total amount stolen vary; one account cites 6.34 billion US dollars, while another estimates the loss at 6 billion US dollars. The attackers exploited Ethereum's EIP 7702 mechanism to execute multiple transactions in a single batch, a technique designed to evade detection. Approximately 2.85 billion dollars were frozen or intercepted, and Binance stated that 98% of customer funds were reimbursed. The breach caused a temporary suspension of withdrawals, leading to 13 billion dollars in outflows, though 3 to 4 billion dollars in inflows returned in the following days, suggesting the platform's core business remains intact. The incident also sparked a public feud between Binance CEO Changpeng Zhao and Elon Musk. Zhao warned that he holds billions in SpaceX shares and could dump them to cover losses, a threat Musk dismissed as negligible relative to SpaceX's market capitalization. Market impact on Bitcoin and Ethereum prices was limited, with Bitcoin falling from 73,000 to 67,000 euros before stabilizing.