On October 29, hackers stole USD 6.3 billion in cryptocurrency from Binance. They pulled off the massive theft by using compromised company computers and an internal AI tool to break into the platform's digital wallets.
In its initial investigation report, the world's largest cryptocurrency exchange outlined a series of security failures that began in June. The breach involved a tampered coding tool and a fake job interview designed to compromise employees' computers.
The FBI has attributed the attack to a North Korean hacking group. North Korea has rejected the allegation. Binance has said it will reimburse all customers who lost funds in the incident.
According to Binance, the first security breach occurred in June when an employee from its wallet development team downloaded a compromised version of an AI tool. The company detected the problem and replaced the affected device. It also changed the employee's credentials. However, the hackers had already gained exposure to the employee's role and the responsibilities of other wallet team members.
A second incident occurred in September when another software engineer was targeted through a fraudulent recruitment process. The employee downloaded a malicious code repository after applying for what appeared to be a genuine job. The interview process reportedly included a virtual meeting with the chief executive of a fictitious company. By October 20, the attackers had gained access to the systems of two wallet developers.
They combined control of the compromised computer with Binance's internal AI tool to extend their access. On October 29, the hackers used the second developer's computer and credentials stolen from the first employee. They then executed a malicious script that triggered the theft.
"This should not have happened, and we apologize for the concern, disruption and uncertainty it caused our users, partners and the wider industry," Binance said in its report. The exchange said it would increase spending on AI-powered threat detection. It is also planning a security research fund and targeted programs with leading AI companies.
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