North Korean hackers stole more than $6 billion from Binance, the FBI said, the biggest crypto theft ever. Nearly half is now frozen, mostly by the companies behind two digital dollars.
Custodia Bank CEO Caitlin Long says that changes crypto in two ways. Hacks now carry geopolitical stakes. And regulators may want freeze rules written into those tokens themselves.
1. Crypto Hacks Now Carry Geopolitical Stakes
The FBI pinned the October 29 attack on TraderTraitor, its name for a North Korean state hacking unit. It asked crypto firms to block any money linked to the hackers.
Long wrote that the attack is “bound to have big geopolitical implications.” In 2023, a White House cyber official said such thefts funded about half of North Korea’s missile program, according to a letter from US senators.
The Binance haul is over four times the previous record, Bybit’s $1.46 billion loss in 2025.
Long called the attack “next-level,” citing a simultaneous breach at Chainalysis, a crypto tracking firm. She said it aimed to slow the freezes, a claim that remains unconfirmed.
2. Freeze Rules Could Move Inside Stablecoins Themselves
Today, freezing a stablecoin, a crypto token pegged to the US dollar, is a company’s call. Tether locked 1.18 billion of its USDT tokens 37 minutes after the stolen coins arrived, according to Elliptic. Circle froze 823 million USDC three minutes later.
Long expects regulators to want that power inside the token’s code.
“That’s gonna have regulatory implications, as US regulators will want compliance built into stablecoins’ smart contracts themselves (not operating an off-chain afterthought, as it is now),” Long added.
The hackers have already found a way around the freeze button. Chainalysis watched them park stablecoins in a Tron lending pool, which handed back receipt tokens no company can freeze.
Code has limits, too. About $3.21 billion of the loot sits in Bitcoin (BTC), Ethereum (ETH), and other coins nobody can freeze, Elliptic estimates.
US law already requires issuers to keep a freeze button under the 2025 GENIUS Act, the Senate Banking Committee says.
Binance says it has covered 95% of the stolen tokens. It planned to reopen withdrawals for 15 currencies on November 1, co-founder Yi He wrote. Binance founder and former CEO, CZ, confirmed withdrawals are already open.
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