SCOTT DETROW, HOST:
It is the biggest cyber heist in history. Hackers were able to steal over $6 billion worth of cryptocurrency from Binance, the biggest crypto exchange in the world. Among those likely affected was everyone from investment funds to everyday investors who trade digital currencies like Bitcoin in the exchange. For more on this developing story, I am joined by NPR senior business editor Rafael Nam. Hey, Rafael.
RAFAEL NAM, BYLINE: Hey, Scott.
DETROW: So if you took $6 billion out of a bank in bags, you would need quite a lot of bags to get it out. I mean, this is a staggering amount of money. What happened?
NAM: I know. And it's such a fascinating story, honestly. So according to researchers, the heist happened in late afternoon, and the entire thing only took about 20 minutes - 20 minutes for the bulk of the $6 billion to be stolen.
Now, Binance and researchers are still trying to figure out exactly how it happened. But the gist of it is that the hackers were able to effectively bypass all kinds of security systems and hack into the trading accounts that people held at this crypto exchange. So this is how Ari Redbord, who's the global head of policy at TRM Labs, a major crypto research firm, put it.
ARI REDBORD: What happened last night is the largest bank robbery in human history. Imagine a world where someone could walk into a bank and walk out with $6.36 billion in stolen funds and then move those funds at the speed of the internet.
NAM: I mean, imagine. And TRM and other researchers I talked to say they are very confident that all fingers point to the state of North Korea.
DETROW: Why are they so sure of that? Why North Korea?
NAM: Now, Redbord says he's sure it's North Korea because they have a history of cyberattacks, and this heist was really well planned and executed.
REDBORD: North Korea has built the most sophisticated cyber capabilities in the world. They have a cadre, teams of professional hackers who are part of their military. This isn't just a commercial hacker who's looking to make some money. This is going to be used for weapons proliferation and other destabilizing activity.
NAM: And that's what makes North Korean hackers so dangerous. They are very motivated and very organized, according to the researchers I spoke with.
DETROW: Will Binance be able to get any of the money back?
NAM: Probably a big chunk of it. And I should note, Binance has promised to fully pay back any customers who lost money in this heist. And we're talking here big investment funds and, like you said, also a lot of mom and pop investors who trade in these exchanges. So Binance is working with other crypto exchanges and has been essentially able to freeze $3 billion that may have been stolen from customers at Binance.
DETROW: But, like, how would this work? How can they actually recover the money?
NAM: You know, because ultimately, cryptocurrencies are traceable, right? It's kind of like how dollar bills have serial numbers. So if you have the number, you can try to find it. Now, not all the money will be recoverable, but Binance is trying. It's a bit of a cat-and-mouse game. The hackers are trying to move their cryptocurrencies back into their own accounts so they can gain full possession of them. And the researchers are racing to stop them from doing that.
DETROW: You know, the crypto sector has been trying so hard to shed its reputation for - shall we put it - shady activities. Does this heist reinforce concerns about this world?
NAM: Yes, I think it does. I mean, you know, Binance has - itself has a checkered history, right? In 2023, they pleaded guilty to violating anti-money laundering laws and paid over $4 billion in penalties. And crypto exchanges are not regulated, like, say, the New York Stock Exchange. They exist in this gray regulatory area. So for example, we don't know who's holding accounts at Binance and who may ultimately have been affected. Binance says they are working hard at recovering the funds and are making - and they will make people whole, but it just reminds many critics of the crypto sector that this remains a bit of a wild west.
DETROW: That was NPR senior business editor Rafael Nam. Thank you so much.
NAM: Thank you, Scott. Transcript provided by NPR, Copyright NPR.
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