Traders profit from $6.3 billion Binance hack through price gaps
Fast-moving firms exploited price volatility caused by apparent North Korean hackers rushing to convert stolen funds.
Apparent North Korean hackers lost approximately $119 million due to poor execution while attempting to convert $6.3 billion stolen from Binance, according to a report by Mint.
The attackers gained control of Binance funds on October 29 and focused on swapping stablecoins like USDT into assets such as Ether to avoid freezing. This aggressive selling created sharp price volatility and price dislocations across different blockchains.
James Aitchison, chief investment officer at Caerus Global Management, said the hack created a single, large, price-insensitive seller moving through thin liquidity. This distorted crypto prices across various venues.
Luca Parlamento, founder and chief investment officer of D2 Finance, said his firm traded on the opposite side of the thieves. He noted attackers paid an average of about $2,657 for Ether on decentralized exchanges, while the price on the platform Hyperliquid was roughly $2,300.
The dislocations also affected Tron, where attackers swapped about $234 million of USDT for 638 million TRX. On SunSwap, the average purchase price was about 36.7 cents compared to a market price near 33 cents.
Binance suspended withdrawals during its investigation, which disrupted the flow of money between venues. The exchange began restoring withdrawals in phases on Sunday and stated it is using company funds to replace the stolen assets.