FBI links $6 billion Binance theft to North Korea

The FBI says North Korea was behind a theft of more than $6 billion in crypto from Binance, a record-sized heist that has sent investigators after the stolen funds. In its account of the attack, the Associated Press reported that the theft happened on Thursday, Oct. 29, and that the FBI linked it to a North Korean group called TraderTraitor.

The bureau urged crypto exchanges and other services to block transactions tied to wallet addresses used to move the funds. The request matters because the stolen crypto can be shifted between wallets and services, making it harder to trace and recover.

How much was stolen, and when?

Binance lost about $6.3 billion in bitcoin and other digital currencies on Oct. 29, according to the AP. The FBI described the theft as more than $6 billion in virtual assets. The AP called it the largest crypto heist on record.

Binance said it had set aside enough of the same digital currencies to cover 90% of the missing assets and promised to reimburse customers in full, the AP reported. The company’s reserve is separate from the FBI’s effort to track where the stolen funds went.

What did the FBI say about the stolen crypto?

The FBI tied the theft to TraderTraitor, a hacking group it attributes to North Korea. The group was also linked to last year’s $1.5 billion Bybit hack, the AP reported.

The bureau said the attackers were converting the stolen assets mainly into ether, the cryptocurrency used on the Ethereum network. It expects them to try moving the funds through decentralized finance services and instant swap services. Decentralized finance, or DeFi, refers to financial services run using blockchain software rather than a traditional intermediary.

Who is being asked to block the funds?

The FBI called on crypto exchanges, blockchain operators, analytics firms and other virtual asset services to block transactions involving addresses used to launder the stolen crypto. CoinDesk’s report on the FBI’s request said the notice listed more than 600 Ethereum addresses, just under 20 Bitcoin addresses and one Solana address.

Those lists identify wallets that the FBI says currently hold or previously held funds from the hack. CoinDesk reported that blockchain analytics firm Chainalysis expected the attackers to use many more addresses as they moved the money through a wider network of services. The FBI’s request aims to make those transfers harder and help keep the stolen funds from being laundered.

Sources

• Associated Press reported — apnews.com
• report on the FBI’s request — coindesk.com