Former Bank of England deputy governor urges early crypto safeguards as investigators trace record hack to North Korea’s Lazarus Group
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Sir Jon Cunliffe, former Deputy Governor of the Bank of England, has called for early “guard rails” to protect Britain as cryptocurrency becomes more connected to mainstream banking. He said regulation is difficult to add later, while stressing that the Binance hack does not currently threaten the UK’s mainstream financial system because the exchange is not authorised or operated here.
Investigators at TRM Labs and Chainalysis believe North Korea’s state-backed Lazarus Group carried out the reported $6.3 billion attack, which they say was planned over many months. A targeted developer’s laptop may have given attackers the approvals to withdraw funds in 20 minutes; $3 billion has been frozen, and investigators estimate North Korea may gain up to $2.4 billion after laundering. The group is also blamed for the 2025 Bybit hack, then the largest at $1.5 billion.
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In short
- Cunliffe urges early safeguards as crypto grows.
- Investigators suspect North Korea’s Lazarus Group.
- $3 billion is frozen; up to $2.4 billion may remain.
How this story developed
- 42 minutes ago Sir Jon Cunliffe, former Deputy Governor of the Bank of England, has called for early “guard rails” to protect Britain as cryptocurrency becomes more connected to mainstream banking.
Full account
A former Bank of England deputy governor has called for safeguards to be introduced early as the cryptocurrency industry grows, following a reported $6.3 billion theft from Binance. Sir Jon Cunliffe said crypto technology was moving closer to mainstream finance and warned that rules become harder to put in place once a system is widely used. He drew a comparison with the difficulty of regulating social media platforms after they had become established.
Cunliffe also cautioned against treating the attack as an immediate threat to Britain’s banking system. Binance is neither authorised nor operated in the UK, he said, and the connection between crypto markets and mainstream finance had not yet reached a point where a breach of this kind would destabilise the wider system. His argument was for preparation as those connections develop.
US investigators have attributed the theft to North Korean cyber activity known as TraderTraitor, which has been linked to the state-backed Lazarus Group. Blockchain analysis firms TRM Labs and Chainalysis also believe Lazarus was responsible. Isabella Chase, TRM Labs’ head of policy, said the operation appeared to have required months of planning. She described evidence suggesting that attackers gained access through a developer’s laptop and used it to obtain the approvals needed to move funds from Binance in about 20 minutes. Binance initially reported a compromised engineer’s laptop, but later said it had found further points of breach.
Binance put the estimated impact at about $6.3 billion and said it was working with law enforcement. The company told users their funds were safe while also promising to cover losses, statements that left the extent of customers’ exposure unclear. Chase said roughly $3 billion of the stolen assets had been frozen and that North Korea might still profit from a potential $2.4 billion, although converting crypto assets into usable cash would reduce the amount recovered by the attackers. The reported loss far exceeds the $1.5 billion taken from Bybit in 2025, an attack also attributed to North Korean hackers. The second report says major cryptocurrency prices fell after news of the Binance breach.
Where outlets differ
From the full account, which is AI-written from the sources:
The first report centres on Cunliffe’s call for early UK safeguards and TRM Labs’ account of how the theft may have unfolded. The second gives more weight to the US investigation, Binance’s changing account of the breach and the immediate market reaction.
The first report presents the compromised laptop as the apparent route into Binance. The second says Binance’s later investigation found additional points of breach, leaving the full method of attack unresolved.
The first report provides figures for frozen assets and the amount North Korea might still obtain. The second focuses on Binance’s estimated total impact and its statements about customer funds.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Early safeguards could help protect consumers and the wider financial system before crypto becomes more deeply connected to mainstream banking, when rules may be harder to introduce. The scale and apparent planning of the reported hack, alongside the possibility that a state-backed group could obtain substantial funds, strengthens the case for setting clear security and accountability standards now.
The case against
Regulation should be proportionate to demonstrated risks: Cunliffe says this exchange is not authorised or operated in Britain, and the attack does not currently threaten the UK’s mainstream financial system. Moving too quickly could impose costs or restrictions on a developing sector before the benefits and risks of specific rules are clear, so safeguards could instead be targeted as crypto’s links to regulated finance grow.
Explained simply
Cryptocurrencies are digital assets that can be held and transferred without using a conventional bank. Exchanges such as Binance let people buy, sell and store them, while blockchain records can help investigators follow transfers; stolen funds may still be difficult to recover if they are moved through multiple services.
Sir Jon Cunliffe was a senior Bank of England official, and his comments concern how Britain should regulate crypto firms as they become more connected to banks and other financial services. Regulation can set safeguards for handling customers’ money and managing cyber risks, though applying rules to firms based or operating outside the UK can be difficult.
Lazarus Group is a hacking group that governments and investigators have linked to North Korea. Alleged thefts involving crypto matter because they can cause large losses for users and may provide funds to North Korea, while also raising questions about the security and oversight of digital-asset services.
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Originally published by Daily Mail as “Call for ‘guard rails’ to protect crypto currency in Britain after the record $6.3billion hack”.