FBI links $6B Binance theft to North Korea’s TraderTraitor

The FBI has blamed North Korea for stealing more than $6 billion in digital assets from Binance, a record-setting crypto theft that could put funds at risk of being laundered across crypto services. The bureau named a North Korean hacking operation called TraderTraitor and asked companies to block transactions linked to its wallets, according to the Associated Press report on the FBI’s attribution.

The FBI said the theft happened on or around October 29. The Associated Press reported that Binance put the loss at $6.3 billion. The bureau’s public alert described the stolen assets as worth more than $6 billion.

What did the FBI say happened to the stolen crypto?

The FBI said TraderTraitor had converted most of the stolen assets into Ether, the cryptocurrency used on the Ethereum network. It warned that the hackers may try to move the funds through decentralized finance services and instant swap services, which let users exchange tokens quickly.

To disrupt those transfers, the FBI, the US Secret Service and the IRS Criminal Investigation division urged crypto exchanges, DeFi services, blockchain analytics firms and other providers to block transactions connected to addresses listed in the bureau’s official alert on the Binance theft. The alert says those addresses hold or have held assets from the theft.

How will Binance cover customers’ losses?

Binance said it had enough of the same types of digital assets set aside to cover 90% of the missing funds, and promised customers would be fully reimbursed, the Associated Press reported. That means customers are promised repayment even as authorities and crypto firms try to trace and disrupt the movement of the stolen funds.

The FBI’s attribution follows a string of major crypto thefts linked to North Korean hackers. The Associated Press reported that TraderTraitor was also tied to last year’s $1.5 billion theft from crypto exchange Bybit. The FBI did not publish evidence for its conclusion in the alert, but listed wallet addresses it said were operated by or closely connected to the group.

Is the FBI’s attribution settled?

The FBI stated that North Korea was responsible. But the Associated Press reported that President Donald Trump said Saturday that investigators did not yet know whether North Korea was involved, while adding that they might determine it was. The public statements therefore differ on how certain the attribution is.

The theft’s full consequences may depend on whether providers can block the listed wallets and track where the assets go next. The FBI said it expects further laundering attempts; it did not say how much of the stolen crypto had been recovered.

Sources

• Associated Press report on the FBI’s attribution — apnews.com
• official alert on the Binance theft — fbi.gov