FBI blames North Korea for $6bn Binance crypto theft

The FBI said on Oct. 31 that North Korea was responsible for stealing more than $6 billion in virtual assets from Binance on or about Oct. 29, naming the operation TraderTraitor. The attribution puts the world’s largest crypto exchange among the targets of a major theft, according to the FBI alert.

Where did the stolen Binance assets go?

The FBI said it had observed TraderTraitor actors converting the stolen assets primarily into ether. It warned that the assets could next be moved through decentralised finance services and instant swap services as part of further laundering.

The agency, alongside the U.S. Secret Service and IRS Criminal Investigation, asked crypto infrastructure firms, exchanges, DeFi services and blockchain analytics companies to block transactions linked to addresses it identified as connected to the operation. The FBI published a list of those addresses in its alert.

How has North Korea responded to the FBI’s claim?

Kim Yo Jong, the sister of North Korean leader Kim Jong Un, denied the country’s involvement on Tuesday, calling the U.S. announcement “a trite provocation,” the Associated Press reported. The FBI’s statement came after Binance said hackers stole more than $6 billion in what AP described as appearing to be the largest cryptocurrency heist on record.

AP reported that the FBI attributed the theft to TraderTraitor, a group it identified as North Korean. The group was also blamed for the $1.5 billion Bybit exchange hack last year, according to AP.

Sources

• FBI alert — fbi.gov
• Associated Press reported — apnews.com