Binance's $6.36B crypto heist exposes authorization flaws, not cryptography

The largest cryptocurrency theft in history, targeting Binance on October 29, saw approximately $6.36 billion in digital assets stolen in just 20 minutes, shifting security concerns from blockchain cryptography to authorization systems. Investigators, including TRM Labs, attribute the attack to North Korean-linked group TraderTraitor, which exploited Binance's signature infrastructure without breaking cryptography. Attackers used EIP-7702 functionality to delegate wallet control to a smart contract, moving 167,464 ethers and other tokens. The breach affected wallets across ten blockchains, suggesting a shared authorization system was compromised. The incident highlights that blockchain security differs from system security, emphasizing the need for stronger access controls and monitoring of anomalous transfers.