FBI Attributes Record $6.3 Billion Binance Hack to North Korea
The bureau identified the group as TraderTraitor, while President Trump expressed uncertainty about the attribution during a weekend appearance in Florida.
By Kofi Costa ·
The Federal Bureau of Investigation determined on Saturday that North Korean hackers orchestrated the theft of $6.3 billion from Binance, marking the largest cryptocurrency heist in history. The agency attributed the attack to a group known as TraderTraitor, the same entity behind a previous $1.5 billion hack of the exchange Bybit.
The theft occurred on Thursday when $6.3 billion in bitcoin and other digital currency was drained from Binance, the world's largest crypto exchange. Crypto experts noted that the speed and method of the raid bore the distinct characteristics of North Korean cyber operations. The funds were moved within minutes of the initial breach.
The FBI stated that its investigation found TraderTraitor converting the stolen assets primarily into ethereum. The bureau expects the group will next attempt to convert these assets using decentralized finance protocols and instant swap services. To prevent the money from being laundered, the FBI requested that crypto exchanges and blockchain analytics firms block transactions linked to specific addresses.
Binance announced on Saturday that it has enough reserves in the stolen currencies to cover 90% of the missing assets. The company pledged to fully reimburse its customers for the loss.
President Donald Trump offered a different perspective on Saturday night while attending a Halloween party at his Mar-a-Lago estate in Florida. When asked by reporters if he was concerned about the hack, Trump said he was learning about the situation as it developed. He stated that investigators did not yet know for certain if North Korea was responsible, though he added that it could still be determined.
Ari Redbord, chief policy officer at blockchain intelligence firm TRM Labs, explained that the hackers will likely break the stolen assets into smaller pieces. He expects them to launder the funds through smaller exchanges over several months to evade detection. Redbord described the process as a bank robbery occurring at the speed of the Internet, noting that tracking the funds in real time allows investigators to build cases and seize assets.
The bureau's probe continues as agencies work to trace the flow of funds through the blockchain network.
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