$6.3 Billion Binance Cyberattack Comes as Exchange Expands in Central Asia

The world’s largest cryptocurrency exchange, Binance, has reported a cyberattack affecting approximately $6.3 billion in digital assets. Blockchain analysts say the October 29 attack is the largest cryptocurrency theft on record. The company says around $3 billion has been frozen and withdrawals have been temporarily suspended. The attack comes as Binance expands its presence in Central Asia, with a licensed exchange in Kazakhstan, a local partner in Uzbekistan, and cooperation with Kyrgyzstan on blockchain development. How the Attack Unfolded According to preliminary findings released by Binance on October 30, the attackers may have used a software development and operations engineer’s compromised laptop to access an internal service and initiate unauthorized cryptocurrency withdrawals. Binance has pledged to cover all losses using its own funds and the Secure Asset Fund for Users, an emergency reserve. TRM Labs, an American blockchain analytics firm named for Token Relationship Management, said the attackers moved assets across ten blockchain networks, conducting most of the transactions in approximately 20 minutes. The firm attributed the attack to TraderTraitor, a North Korean state-sponsored hacking group, with high confidence. Binance Kazakhstan Responds Following reports of the breach, Kazakhstan-based news outlet Digital Business contacted Binance Kazakhstan to ask about the safety of local customers’ funds. "We have found no evidence of any compromise of wallet private keys. Users' funds are safe. Once the incident response work is complete, we will also publish an updated proof-of-reserves report," the exchange said. Private keys are the secret codes used to authorize cryptocurrency transfers; a proof-of-reserves report compares an exchange’s asset holdings with its customers’ balances. Binance Kazakhstan operates under the supervision of the Astana Financial Services Authority at the Astana International Financial Centre. In September, the National Bank of Kazakhstan signed a memorandum of understanding with Binance Investments Co. to establish a regional settlement hub for international payments, including digital asset transactions for customers in Central Asia, the Commonwealth of Independent States, and Eastern Europe. The project involves registering a Binance Group entity in Kazakhstan and obtaining a Category I payment organization license from the National Bank. The settlement hub remains a proposal and has not begun operating. Binance's Operations in Uzbekistan In Uzbekistan, Binance serves customers through its licensed local partner, Coinpay. The partnership was announced in January 2025, following a regulatory dispute that resulted in Binance paying a fine for violating Uzbekistan’s cryptocurrency regulations. The service officially launched on January 28, 2025, allowing customers to deposit and withdraw funds through domestic payment systems. Direct peer-to-peer transactions through Binance, in which users trade with one another, are prohibited for residents of Uzbekistan under national regulations. Kyrgyzstan's Blockchain Partnership In October 2025, authorities announced the launch of KGST, a stablecoin designed to maintain the value of one Kyrgyz som, on BNB Chain, a blockchain network whose initials stand for Build and Build. Binance founder Changpeng Zhao became an adviser on digital assets to the president of Kyrgyzstan in May of that year. BNB Chain and Binance’s cryptocurrency exchange are separate systems. A breach of...