Largest Crypto Hack Ever — $6.3B Binance Breach — Full Breakdown & Transcript

[00:01] I imagine a lot of you have already heard, but I've only just now caught up on the largest hack in history that just unfolded yesterday where $6.3 billion was drained like piss from balls from Binance, the world's largest crypto

[00:18] exchange. And they did it in a subhour gold split for this speedrun here, where most of it was done in 20 minutes, which is less than half of a single deadlock match. And previously, the largest hack was that of bybit at 1.5 billion last

[00:34] year. And even though they haven't caught Cobra Commander here, whoever was caught Cobra Commander here, whoever was responsible for this hack, the finger is responsible for this hack, the finger is being pointed at North Korea by a ton of

[00:46] people right now. And that's not just like a baseless accusation or anything like a certified 50 cent why you saying [ __ ] me for type of thing. Like there is [ __ ] me for type of thing. Like there is a strong reason to believe that the only

[00:59] uh place this could be is from the North Korean hacking unit. Uh this article here from TRM is speculating that it's Trader Trader which was the North Korean

[01:12] hacking squad that was responsible for the bybit hack. Now don't panic. They didn't get the full 6.3 billion because roughly 2.5 billion was frozen. So, they were unable to access this. Voidzilla, Coffeezilla on his Voidzilla channel

[01:28] this hack. He also speculated that it is likely North Korean hackers, but he explained how the freezing worked here and how it was like actually pretty quickly enacted to prevent them from

[01:40] getting all of it. Of course, they still made off with a pretty penny to the tune of, you know, over three and a half billion dollars or whatever, but you kaboodleoodle >> to this hacker uh that linked back to

[01:52] him. And it looks like they have about $5.7 billion, but that doesn't tell the whole story because shortly after they got that, people started freezing the funds. Now, he's about to dive into the freezable assets versus unfreezable

[02:06] assets and why it's a very interesting conundrum because in a case like this, the ones that can be frozen were, but not all of the crypto assets can be done about it. They can't just pump the brakes like, "Oh [ __ ] it's it's stolen.

[02:22] Stop it." >> That in crypto there is this unsolved dichotomy of freezable verse unfreezable assets. Do we want, you know, the things that are on these blockchains to be controlled by a centralized entity or do

[02:37] we not? Because right now you sort of have both. You have assets like Bitcoin, Ethereum, which there's no centralized authority. Even in the case where it's an obvious hack, there's no one that can just say, "Okay, we are going to stop,

[02:50] you know, this guy." And then you have assets like stable coins. This is actually the story that kind of saved Binance a little bit is that after this assets got frozen. >> I recommend Voidzilla's full coverage

[03:03] this looks like. But to put it in a nutshack for you, fundamentally it becomes a race where in a case like this, they need to find a way to launder the freezable assets into the unfreezable assets. So that way they

[03:18] and the crew can't come in there with their meddling and, you know, save the day or anything. So, when they have these freezable assets, shit's the with it, and they know that. So, Compisilla kind of lays out what it

[03:32] tornado cash, and then just trying to eventually get those unfreeze, get those freezable assets into unfreezable assets. And they, not just Coffeezilla, but a lot of outlets as well as other uh YouTubers covering this have laid out

[03:46] exactly what that process looked like where they were uh fundamentally borrowing against these stolen assets as collateral. It's a really interesting dive into what it looks like, but the goal was simple. Scramble to get these

[04:00] freezable assets into unfreezable assets because once they're there, there's no one to put the nipple clamps on it because those aren't controlled. And for a lot of people, that's one of like the biggest selling points of it. It's very

[04:13] enticing that some of them don't have like a centralized entity overseeing it. But that creates in a case like this an issue where when it's a blatant hack, just immediately put the kibos on it, be like, "Whoa, Buster, hold your horses

[04:27] and rein it in." But with the freezable assets in this case, they were able to and actually put a stop to those assets being moved. And speaking of assets, you've been waiting for with sweat on your brow. I know that you've been

[04:42] breaking out in the hives panicking wondering, "What about my hawka coin? wondering, "What about my hawka coin? What about my cyber leak GTA 6 tokens? Are those safe?" And don't worry, rest assured, as far as I know, those have

[04:58] not been compromised. You still have your infinite wealth with those shitcoins. They are still out there so you can sleep easy tonight. investigation suggested that the security incident may have involved a

[05:11] subsequent investigation has uncovered additional points of breach. The laptop one struck me as a little peculiar because it it feels like that'd be such a huge problem if a single compromised laptop could lead to a $6.3 billion

[05:27] drainage here. It gives me vibes of that time Randy Pitchford left a USB drive at the Medieval Times restaurant that was filled with his porn. Like, so you're telling me like just someone at Binance could have their laptop accessed and

[05:41] then that leads to all of this just from that single failure point? Like I don't know that that would be very alarming even though this is already clearly alarming. What always happens in a case like this naturally is that the people

[05:55] safe with their money on there if they're able to be compromised to this find in the investigation, no matter how complex the hack, there are going to be countless users that want to withdraw their money. That is the natural way

[06:09] things go. It is just obvious that if this platform has just been drained for comfortable keeping their money there. that that wasn't like, you know, the sole thing here. This was a complex

[06:23] coordination with law enforcement to resolve it. We're still gathering the we have them. Binance will cover all losses from the SAFU fund and the company's funds. User funds are safe. We are still on track towards the expected

[06:38] timeline to resume the withdrawal service in 45 hours. Deposits remain unaffected. The outflow ceased when we paused withdrawal service earlier. We freeze many of the impacted assets and have frozen around 3 billion thus far.

[06:51] updates through official Binance channels as more verified information becomes available. Again, this is why I'm not entirely sure what effect this has on like the users. Obviously, the assets that are affected here are assets

[07:04] that users have, but they are saying that the user funds themselves haven't been, you know, affected directly, but clearly there's other problems that arise from something like this. Uh anyway though, Binance has been putting

[07:16] out like frequent updates on the situation here like with what's going on and what they're doing, how they're working with law enforcement. The thing is like even when they do catch who's responsible for this, like identify

[07:29] them, catch is not the right nomenclature, it will likely tie back to North Korea. And in that case, there's nothing that can be done about it. There's not anything that they will really be able to do. It's why these

[07:42] huge hacks come from North Korea. They are like the premier uh big buck hunter are like the premier uh big buck hunter hackers. They are able to get these huge

[07:54] paydays because they're like the only ones that can get away with it. There's a lot of great coverage of this diving deep into the nuts and bolts of exactly what happened and how going through like the timeline of events and what we know.

[08:09] The only thing that we don't know for sure is that it's North Korea, but all sure is that it's North Korea, but all signs point to it being a North Korean hack here. Anyway, though, this is like a pretty wild thing that's happened

[08:24] here, and uh I just kind of wanted to briefly yap on it a little bit. That's briefly yap on it a little bit. That's that's really about it. T.