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FBI blames North Korean hackers for $6.3B Binance theft

Binance says hackers drained about $6.3 billion from its wallets; the FBI blamed North Korea’s TraderTraitor, while Pyongyang denies involvement and recovery continues.

BitCurrent Newsroom2 min read

FBI blames North Korean hackers for $6.3B Binance theft

Binance says hackers stole about $6.3 billion from its wallets in what blockchain firms describe as the largest crypto theft on record.

  • About $6.36 billion moved across 10 blockchains.
  • The bulk of the theft took about 20 minutes.
  • Binance and its partners froze roughly $3 billion in affected assets.

How did attackers move the funds?

According to Reuters’ report on the breach, the funds were drained from wallets Binance uses to process transactions. TRM Labs said attackers compromised the exchange’s signing infrastructure, which authorizes transactions, and used it to empty the affected wallets.

Binance initially said a compromised laptop may have been involved. Its subsequent investigation found additional “points of breach,” but the company has not publicly detailed them.

Who does the FBI say was behind it?

The FBI attributed the theft to TraderTraitor, a North Korean hacking group, according to the Associated Press report on North Korea’s response. TRM and Chainalysis have also linked the attack to the group, though those assessments do not establish the attackers’ identity.

North Korea denied involvement on Tuesday. U.S. President Donald Trump said investigators did not yet know whether North Korea was responsible. Binance has said it is working with law enforcement to identify the criminals.

How much can Binance recover?

Binance said it had reserved more than $6.34 billion in company funds to cover the stolen assets and promised to cover user losses. Its partners froze roughly $3 billion, or about half the affected assets.

A freeze does not mean the assets have been returned. Reuters reported that stablecoin issuers can freeze some tokens, while bitcoin and ether cannot be frozen by a central issuer. The recovery of those assets remains uncertain.

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