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US authorizes seizure of $1.2 billion in Binance crypto

The Justice Department says U.S. efforts froze $2.7 billion after Binance’s $6 billion theft, with court authority to seize or restrain $1.2 billion.

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US authorizes seizure of $1.2 billion in Binance crypto

U.S. authorities have court authorization to seize or restrain more than $1.2 billion in cryptocurrency stolen from Binance, the Justice Department said Thursday, Nov. 12. The department said collective government and private-sector efforts have frozen more than $2.7 billion of the stolen assets, according to its announcement.

The FBI told the Associated Press it had seized more than $1.2 billion in crypto reported stolen from Binance last month. The AP reported that the department’s court authorization covers seizure or restraint of more than $1.2 billion within the total already frozen.

The theft occurred on or about Oct. 29 and involved more than $6 billion in virtual assets, the Justice Department said. It attributed the operation to members of North Korea’s military, whom the FBI calls TraderTraitor. The FBI had previously attributed the theft to the group, the Associated Press reported.

U.S. agencies worked with virtual-asset service providers to track and block the funds, according to the Justice Department. The department said efforts to trace, freeze, seize and forfeit the assets remain ongoing as TraderTraitor actors continue laundering them through cryptocurrency bridges, mixers and exchanges.

The Justice Department said a forfeiture claim would typically be filed with a judge, who would determine who has a legitimate claim to recovered funds, the AP reported. The department’s announcement said it had obtained authorization to seize or restrain the funds; it did not say that the full amount had been returned to Binance or affected users.

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