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FBI ties $6 billion Binance theft to North Korea

The FBI says North Korea stole more than $6 billion from Binance and is urging crypto firms to block linked wallets as the funds move into Ether for laundering.

Onchain Report Newsroom#ea741c2 min read

FBI ties $6 billion Binance theft to North Korea

The FBI says North Korea was behind the theft of more than $6 billion in crypto from Binance, the world’s largest crypto exchange. The bureau is urging crypto firms to block transactions tied to the stolen funds. In its alert on the Binance attack, dated October 31, the FBI named the activity “TraderTraitor.”

The theft happened on or about October 29. The Associated Press reported that $6.3 billion in bitcoin and other digital currency was taken within minutes, making it the largest known crypto heist. Binance has promised to reimburse customers, according to the AP’s report.

How are the hackers moving the stolen crypto?

The FBI says it has seen TraderTraitor converting the stolen assets mainly into Ether, the cryptocurrency used on the Ethereum network. The bureau expects the group to move the funds again through DeFi services—crypto services that run on blockchain networks—and instant swap services.

Those steps can make stolen funds harder to trace and recover. The FBI, the U.S. Secret Service and the IRS Criminal Investigation unit are asking crypto exchanges, blockchain firms and other service providers to block transactions connected to addresses linked to the theft.

What does the FBI’s North Korea claim mean?

The FBI directly attributes the theft to North Korea. Its alert uses “TraderTraitor” for this North Korean cyber activity. The AP says the group was also blamed for last year’s $1.5 billion Bybit hack.

The FBI’s alert is an official U.S. government attribution. The AP reported that President Donald Trump said investigators were still learning about the case and that he did not know whether North Korea was involved.

Will Binance customers lose money?

Binance has said customers will be fully reimbursed. The AP reported that the exchange had enough of the same digital currency set aside to cover 90% of the missing assets. That leaves the FBI’s effort to disrupt laundering central to whether more funds can be traced or recovered.

Sources