FBI links Binance theft of more than $6 billion to North Korea
The FBI says North Korea stole more than $6 billion from Binance in October and is converting the assets into ether, prompting a push to block laundering routes.
The Chain Times Desk2 min read
The FBI says North Korean hackers stole more than $6 billion from Binance in an attack it describes as the biggest crypto heist in history. In an FBI alert dated October 31, the bureau named the group TraderTraitor and said the theft happened on or around October 29.
The FBI’s attribution puts North Korea at the centre of a record-setting theft from the world’s largest crypto exchange. The Associated Press reported that Binance said $6.3 billion in bitcoin and other digital currency was taken. The FBI’s alert gives a lower threshold: more than $6 billion.
What does the FBI say happened to the stolen crypto?
The FBI says TraderTraitor has been converting the stolen assets mainly into ether, the cryptocurrency used on the Ethereum network. The bureau expects the group to try to move the funds through DeFi services and instant swap services. DeFi refers to financial services run through blockchain software rather than a traditional intermediary.
The FBI, the US Secret Service and the IRS Criminal Investigation division urged crypto businesses and blockchain service providers to block transactions tied to addresses used by the group. The FBI published a list of those addresses in its alert. That request is aimed at disrupting efforts to move and launder the stolen funds.
How much could Binance customers lose?
Binance said it had enough of the same digital currencies set aside to cover 90% of the missing assets and promised customers would be fully reimbursed, according to the Associated Press report. The FBI’s attribution concerns who carried out the theft and where the money is moving; it does not change Binance’s stated plan to repay customers.
The AP reported that the theft took place within minutes. It also noted that TraderTraitor was linked to last year’s $1.5 billion Bybit hack. The FBI’s alert asks firms to help block transactions, but it does not say how much of the Binance funds have been recovered.
What happens next?
Investigators expect the group to keep converting and moving the assets. The FBI says the funds may pass through DeFi and instant swap services as laundering continues. Its alert asks service providers to watch the listed addresses and block transactions connected to them.
Sources and documents
- FBI alert dated October 31 — fbi.gov
- Associated Press report — apnews.com