The FBI has linked the $6.3 billion theft from Binance to North Korean hackers, warning cryptocurrency businesses against processing transactions connected to the attackers. In an Oct. 31 alert, the bureau identified the activity as “TraderTraitor” and warned that stolen funds could move through decentralized finance (DeFi) platforms.
According to the FBI, North Korean actors converted most of the stolen assets into ether. The bureau expects further laundering through DeFi platforms and instant-swap services, urging businesses across the crypto industry to help block the funds.
FBI Urges Crypto Firms to Block Stolen Funds
The FBI, alongside the US Secret Service and IRS Criminal Investigation, urged node operators, instant exchanges, and DeFi services to block transactions linked to identified addresses. The agencies also warned businesses to monitor subsequent transfers involving the stolen assets.
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Blockchain analytics firm Chainalysis had expressed a “high degree of confidence” in North Korea’s involvement. Its assessment followed connections between the Binance theft and proceeds from last month’s Bitget exploit.
Binance Advances Recovery Efforts
Binance estimated the losses at $6.3 billion and reported that approximately $3 billion had been frozen onchain. The exchange’s recovery efforts also include replenishing assets affected by the theft.
Binance said it had replenished 90% of the stolen assets by Oct. 31 through purchases of less-liquid tokens across market and over-the-counter channels.
The exchange also set Nov. 1 as its target for restarting withdrawals, subject to security checks. Binance pledged to publish a detailed post-mortem and said users would not bear the financial impact.
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