The U.S. Federal Bureau of Investigation (FBI) has urged the decentralized finance (DeFi) industry to block cryptocurrency addresses linked to the hack of Binance, the world's largest cryptocurrency exchange, as part of efforts to disrupt the laundering of funds stolen in what is considered the largest crypto exploit in history. The appeal underscores why the DeFi sector is central to the case: its protocols typically run through smart contracts rather than a central custodian, so there is often no single operator able to unilaterally freeze assets the way a centralized exchange can.

On-chain data showed billions of dollars in digital assets moving from wallets connected to Binance to newly created external addresses. Reports have put the total at more than $6 billion, which would make it the largest crypto attack ever recorded.

According to blockchain intelligence firm Arkham, the hackers held over $5.7 billion in assets stolen from Binance, including:

• $1.5 billion in BTC ($BTC)
• $900 million in ETH ($ETH)
• Approximately $1.5 billion in USDT ($USDT)
• More than $800 million in USDC ($USDC)

BitKE reported on the breach in an X post on October 30, 2026:

MILESTONE | Binance Gets Hacked in the Largest Crypto Exploit in History #Binance, the world's largest cryptocurrency exchange, is investigating a security breach after on-chain data showed billions of dollars in digital assets moving from wallets linked to the platform to newly created external addresses. Reports put the figure at over $6 billion making it the largest ever crypto attack in history. According to blockchain intelligence firm, #Arkham, the hackers held over $5.7 billion stolen from Binance including: $1.5 billion in $BTC $900 million in $ETH ~$1.5 billion in $USDT Over $800 million in $USDC Details: #BinanceHack #CryptoHack #CryptoHacks2026 #CryptoMilestone

— BitKE (@BitcoinKE) October 30, 2026 (source)

The bureau said it had detected signs that the hacking group TraderTraitor was converting the stolen assets primarily into ether, with laundering expected to continue through decentralized finance protocols and instant-exchange services. Instant-exchange services let users swap one cryptocurrency directly for another and typically operate with less identity verification than regulated trading platforms. The FBI is investigating the incident alongside the U.S. Secret Service and the IRS Criminal Investigation Division.

The attribution formalizes suspicions raised shortly after the attack by blockchain analytics firms TRM Labs and Chainalysis, which also linked the exploit to TraderTraitor. The group was previously linked to North Korea's $1.5 billion hack of Bybit in February 2025, making the Binance incident roughly four times larger than the earlier theft. Combined, the two intrusions attributed to the group account for roughly $7.8 billion in stolen cryptocurrency.

Binance has said approximately $6.3 billion in digital assets were stolen in the attack, which involved a compromised engineer's laptop and weaknesses in the exchange's transaction approval system. The exploit reportedly affected 10 blockchains and unfolded in about 20 minutes.

The exchange has set aside at least $6.34 billion in company funds to cover the losses and said customer assets remain safe. Binance and its industry partners have also frozen approximately $3 billion in stolen assets. Based on the reported figures, that leaves roughly $3.3 billion of the stolen funds outside the freezes — the portion the FBI's address-blocking appeal is intended to help intercept while laundering is still underway.

The FBI said it remains committed to disrupting North Korea's cryptocurrency theft and laundering operations, and has requested information that could help identify those responsible or recover the stolen funds. Whether DeFi protocols and instant-exchange services act on the request — and how much of the remaining funds can be frozen — is the key open question as the multi-agency investigation continues.

Source: BitcoinKE