FBI pins $6 billion Binance theft on North Korea

Was North Korea behind the record Binance theft? The FBI says the country was responsible for stealing more than $6 billion in virtual assets from the exchange on or around October 29, identifying the activity as TraderTraitor. The bureau says the attackers are converting the stolen assets primarily into ether. Its alert asks crypto businesses to block transactions linked to addresses used to launder the funds.

How is TraderTraitor moving the stolen crypto?

The FBI says the attackers are expected to use decentralized finance services and instant swaps for further laundering. The agency issued its alert with the U.S. Secret Service and IRS Criminal Investigation, urging crypto firms and infrastructure operators to block transactions to or from the listed addresses. The FBI notice includes more than 600 Ethereum addresses, just under 20 Bitcoin addresses and one Solana address, according to CoinDesk’s report on the FBI alert.

The scale makes tracing and blocking difficult: Chainalysis told CoinDesk that attackers had already used thousands of addresses and that the number could grow into the tens of thousands. The FBI’s address list is therefore a direct request for exchanges, DeFi services, node operators and analytics firms to help interrupt the flow. It does not, by itself, show how much of the stolen crypto has been recovered.

What should Binance customers watch next?

The FBI alert confirms the attribution and describes the laundering route; the Associated Press reported the theft at about $6.3 billion and called it the largest crypto heist on record. Binance said it had funds set aside to cover 90% of the missing assets and promised customers full reimbursement, the AP reported. CoinDesk said Binance planned to resume withdrawals on Sunday, so the next thing to watch is whether the exchange restores withdrawals as scheduled and publishes an updated recovery figure.

References

• CoinDesk’s report on the FBI alert — coindesk.com
• FBI alert — fbi.gov