Binance founder Zhao warns of scams after $6.3B hack

Binance founder Changpeng Zhao has warned that fraudsters are "on overdrive" after the record $6.3 billion hack of the world's largest cryptocurrency exchange. He shared screenshots of fake compensation offers aimed at customers whose withdrawals were frozen after the breach. "Scammers on overdrive now," Zhao wrote on X. "Be careful," The Independent reported.independent.co.uk

The warning comes as Binance tries to restore normal service and win back customer trust after what appears to be the largest crypto theft on record. Security experts say the headlines alone give criminals a convincing cover story.

Impersonation risk

Security experts expect cybercriminals to exploit the panic by posing as Binance staff. They may send fake security alerts or ask users to move funds into supposedly "safe" wallets. Even people whose accounts were not affected could be targeted, and users are being told to check for updates only through the exchange's official app or website, according to The Independent.independent.co.uk

"With billions of dollars reportedly affected, people will understandably be worried about their investments. Scammers know this and could use the headlines to make fraudulent messages appear more convincing," said Justas Pukys, a senior product manager at cybersecurity firm Surfshark, in comments to The Independent.independent.co.uk

Withdrawals resume

Hackers drained Binance's hot wallets late on Thursday, October 29. The exchange's early investigation traced the breach to a DevOps engineer's compromised laptop, Business Insider reported. Binance froze withdrawals and began reopening them in phases on Sunday, November 1, starting with the Bitcoin network, AFP reported.afp.com+1

Customers moved money out quickly. Between 06:00 and 15:30 GMT on Sunday, Binance processed about $4.65 billion in withdrawals and $1.01 billion in deposits, a net outflow of roughly $3.64 billion, Yahoo Finance reported. TechCrunch said that net outflow was 2.1% of the exchange's total assets under management. The Independent reported that outflows have since returned to normal levels.techcrunch.com+1

Binance says it has used company funds, including its emergency reserve for users, to replace about 95% of the stolen assets. It is still buying the remaining tokens, which are less liquid, TechCrunch reported. About $3 billion has been frozen with help from partners, including stablecoin issuers Tether and Circle ↗ 4.36%, Business Insider reported.businessinsider.com+1

North Korea blamed

The FBI has blamed the theft on North Korea's state-backed TraderTraitor group. The bureau said the hackers are converting stolen assets mainly into Ethereum ↘ 1.30%, DW reported. In a note on Friday, the FBI said it expects the assets to be "further laundered by converting them using DeFi and instant swap services," according to The Independent.amp.dw.com+1

Getting the money back may be hard. After TraderTraitor stole about $1.5 billion from Bybit in 2025, that exchange recovered less than 5% of the lost funds, The Independent noted.independent.co.uk