FBI ties $6B Binance theft to North Korea’s TraderTraitor

The FBI said Saturday that North Korea was responsible for stealing more than $6 billion in virtual assets from Binance on or about Oct. 29, identifying the activity as TraderTraitor. The theft appears to be the largest crypto heist on record, according to the Associated Press report on the FBI announcement.

How much was taken, and how did the funds move?

The FBI’s notice puts the theft above $6 billion; Binance had earlier reported losses of about $6.3 billion. Blockchain firm TRM Labs told the AP that roughly $6.36 billion moved from Binance wallets across 10 blockchains in about 20 minutes.

Binance said its investigation initially pointed to a compromised laptop, then uncovered additional points of breach, the AP reported. The exchange has said it will cover customers’ losses and set aside more than $6.34 billion in company funds.

What does the FBI say the hackers are doing now?

The FBI said TraderTraitor actors are converting the stolen assets primarily into ether. It expects them to move funds through decentralized finance services and instant swap services in further laundering attempts, according to the FBI alert.

The FBI, the U.S. Secret Service and IRS Criminal Investigation urged node operators, exchanges, DeFi services and other crypto firms to block transactions involving listed addresses or funds derived from them. The FBI’s notice identifies addresses it says are holding or have held assets from the theft.

What happens next?

Binance said it is working with law enforcement and blockchain firms to trace and recover funds. The FBI expects laundering to continue, so the next step is whether crypto services block transfers linked to the addresses it identified and whether investigators recover more of the stolen assets.

References

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