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

Who was behind Binance’s record theft? The FBI says North Korea’s TraderTraitor group stole more than $6 billion from the exchange on or about Oct. 29, and has urged crypto firms to block addresses linked to laundering. The bureau’s attribution, reported by the Associated Press, makes this the largest crypto heist on record.

What did the FBI identify?

The FBI tied the theft to TraderTraitor, which it describes as North Korean cyber activity. The FBI notice covered by CoinDesk lists hundreds of addresses that held, or at some point held, funds from the hack. CoinDesk reported that the list included more than 600 Ethereum addresses, nearly 20 Bitcoin addresses and one Solana address.

How does the FBI expect the funds to move?

The FBI says the hackers have been converting the stolen assets mainly into ether and expects them to use decentralised finance tools and instant swap services to launder the funds. It urged THORNode and RPC node operators, instant exchanges, DeFi services, blockchain analytics firms and other virtual asset providers to block transactions involving the listed addresses. That request targets the routes the FBI says could help obscure the funds’ origins as they move across services.

What is the scale of the theft?

The FBI’s notice puts the stolen amount above $6 billion; the AP reported Binance’s estimate at $6.3 billion. Binance said it had enough of the same digital currencies set aside to cover 90% of the missing assets and promised customers full reimbursement, according to the AP. The FBI’s attribution identifies the actor, while the laundering response now depends on whether services can identify and block the addresses as funds move.

Watch for the address trail to widen: Chainalysis told CoinDesk that thousands of addresses were already involved and expected the number to reach tens of thousands in the coming weeks.

References

• Associated Press — apnews.com
• FBI notice covered by CoinDesk — coindesk.com