Record $6.3bn crypto heist: FBI blames North Korea for Binance theft

FBI links North Korea to theft

The FBI said North Korean actors stole $6.3bn in virtual assets from Binance. It attributed the operation to TraderTraitor, a group also blamed for stealing $1.5bn from the Bybit platform in February last year.

The agency reported that the stolen assets were being laundered, primarily by converting them into Ethereum. It said the funds were expected to undergo further laundering in stages and asked virtual asset service providers to block transactions linked to suspected digital addresses.

Binance covers most losses

Binance said it had replaced 90 percent of the stolen amount by purchasing new tokens with company money. The remaining 10 percent involves less liquid tokens, which may take longer to buy.

The company said it would continue purchasing the relevant tokens until the full amount was covered, adding that users would not bear the financial impact. Funding came from its $1bn Secure Asset Fund for Users, some of its Futures Insurance Fund and its corporate treasury.

Withdrawals expected to resume

Binance co-CEO Richard Teng described the breach as a complex attack involving a compromised laptop and malicious software designed to erase evidence. Following the hack, the exchange stopped customers from withdrawing funds.

Market reaction and reassurance

Crypto prices fell on Friday as Binance sought to reassure customers that their funds were safe. The company operates the world’s largest crypto exchange. The FBI’s request for providers to block suspected transactions came as laundering activity continued. Binance’s token purchases were intended to replace the stolen assets, though the remaining less liquid tokens could take longer to obtain.