FBI Blames North Korea for Record $6.3 Billion Digital Asset Theft from Binance
The US Federal Bureau of Investigation (FBI) has blamed North Korea for the theft of $6.3 billion in digital assets from Binance, the world's largest cryptocurrency exchange platform — a theft described as the biggest in history.
In a statement on Saturday (October 31) local time, the FBI said North Korean hackers are trying to launder the huge stolen fortune mainly by converting it into the Ethereum cryptocurrency.
The US intelligence agency specifically blamed a hacker group called “TraderTraitor” for the cyberattack.
According to the FBI, the same group was also behind the theft of $1.5 billion in digital assets from the “Bybit” platform in February last year.
The FBI fears the stolen assets may be laundered in stages, even more deeply. It has urged digital asset service providers to stay alert and to block suspicious digital transactions.
After the major cyberattack, Binance moved quickly to reassure users. In a separate statement on Saturday, the company said it has already recovered 90 percent of the stolen money by buying new tokens using its own funds.
The remaining 10 percent consists of less liquid tokens, so buying those will take some time. But Binance stated clearly: “Not our users, but Binance itself will bear the full financial loss of this theft. We will continue buying tokens until 100 percent compensation is ensured.”
To recover the tokens, Binance has spent money from its $1 billion Bitcoin reserve fund kept to protect customers in case of a security breach, its Futures Insurance Fund and its corporate treasury.
Binance co-CEO Richard Teng said the hacking incident was a very sophisticated attack. Using a hacked laptop and malware, the hackers erased all traces of their activity, which has made the investigation quite complicated.
Although customer fund withdrawals were suspended immediately after the attack, Binance announced on Saturday that it is on course to restore withdrawals by Sunday.
The company also said it will publish a new “proof-of-reserves” snapshot so that users can independently verify whether their assets are secured at a 1:1 ratio.
