CoinDesk
Binance founder Changpeng Zhao warned that AI could enable more attacks on cryptocurrency exchanges and banks after a $6.4 billion theft attributed by the FBI to North Korean hackers. Investigators have found no evidence that AI agents directed the laundering of the stolen funds, and Zhao offered no evidence that AI was used in the breach.
Binance recorded $5.28 billion in net outflows over a 46-hour period ending Tuesday. Researchers estimated that $2.85 billion in stolen funds had been frozen or seized, with Tether, Circle and law enforcement agencies among those involved in freezing funds.
Why it matters
Zhao’s warning is about the growing risk that attackers gain access to AI capabilities faster than financial institutions can deploy defenses. He argued that attackers need to find one vulnerability, while defenders must identify and fix them all. He urged firms to adopt AI-based defenses and called for common security standards or an industry alliance; discussions were underway, but no details had been agreed.
The distinction between the breach and the movement of stolen funds matters. Elliptic said transactions appeared to follow automated scripts, with no evidence of AI agents making decisions. That finding concerns laundering, not how the attackers gained access to Binance.
Market impact
Zhao said an initial $3.6 billion in withdrawals represented about 2% of Binance’s holdings. Figures shared by CEO Richard Teng showed $10.97 billion in withdrawals and $5.28 billion in net outflows over a separate 46-hour period ending Tuesday. Teng said hourly deposits had begun exceeding withdrawals, although the exchange remained in net outflow over the full period.
The incident puts exchange security and withdrawal resilience in focus across crypto and traditional finance. Zhao expects more attacks in the near term, while arguing that stronger defenses could reduce losses over time.
Frequently asked questions
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Who did the FBI blame for the $6.4 billion Binance theft?
The FBI attributed the theft to North Korean hackers. Zhao did not provide evidence that AI was involved in the attack.
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Did AI agents launder the stolen Binance funds?
Investigators found no evidence that AI agents directed the laundering. Elliptic said the transactions appeared to follow automated scripts.
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How much did Binance record in net outflows over 46 hours?
Binance recorded $5.28 billion in net outflows over a 46-hour period ending Tuesday. Teng said hourly deposits had begun exceeding withdrawals.
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How much of the stolen money had been frozen or seized?
Researchers estimated that $2.85 billion in stolen funds had been frozen or seized, with Tether, Circle and law enforcement involved.
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What security measures did CZ call for?
Zhao urged firms to use AI to defend against AI-enabled attacks and called for common security standards or an industry alliance. No details had been agreed.
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