Binance Confirms North Korean Link After $6.3 Billion Theft
The FBI attributes the record crypto hack to the TraderTraitor group, while Binance pledges full reimbursement to customers.
By Kofi Costa ·
North Korean hackers stole $6.3 billion from Binance on Thursday. The FBI identified the attackers on Saturday as a group called TraderTraitor. This heist marks the largest cryptocurrency theft in history.
The bureau stated that the attack involved malicious cyber activity by TraderTraitor. The same actors previously stole $1.5 billion from the Bybit exchange last year. The FBI asked crypto exchanges and blockchain analytics firms to block specific addresses. This measure aims to prevent the stolen funds from being laundered.
Investigators found that the hackers converted most stolen assets into ethereum. The FBI expects the group to use decentralized finance tools and instant swap services next. These methods allow for rapid conversion of digital currency.
Binance stated Saturday that it holds enough reserves in the stolen currencies to cover 90 percent of the missing assets. The company promised that all customers will receive full reimbursement. The firm is the world's largest crypto exchange.
Ari Redbord, chief policy officer at TRM Labs, described the event as a bank robbery at internet speed. He said the hackers will likely fragment the stolen assets. They will move the money through smaller exchanges to avoid detection. This process could take several months.
Redbord noted that analysts can track and trace funds in real time. This capability helps build investigations and seize assets. He characterized the ongoing effort as a cat and mouse game between the hackers and investigators.
