New York (AFP) – The FBI on Saturday accused North Korea of stealing more than $6 billion in virtual assets from the cryptocurrency exchange Binance in what is thought to be the biggest-ever crypto heist. The US law enforcement agency’s statement came as Binance offered reassurances it was covering the losses from the hacking attack, saying it has used company funds to buy tokens to replenish 90 percent of what was stolen. Binance is the world’s largest crypto exchange by daily trading volumes.
News of the cyberattack caused the prices of most major cryptocurrencies to fall sharply on Friday. The FBI confirmed earlier suspicions from private investigators and analysts that a North Korea-affiliated group called TraderTraitor was behind the hack. TraderTraitor is the same group blamed for a $1.5 billion theft from the Bybit platform in February last year.
“The Federal Bureau of Investigation (FBI) is releasing information advising the Democratic People’s Republic of Korea (North Korea) was responsible for the theft of more than $6 billion USD in virtual assets from cryptocurrency exchange Binance, on or about October 29, 2026,” the statement said. The FBI added that it had observed “TraderTraitor actors” converting stolen assets into Ethereum and expected those assets to be laundered further by converting them using decentralized finance and instant swap services. It said it was urging private sector entities “to block transactions with or derived from addresses TraderTraitor actors are using to launder these stolen assets.”
US President Donald Trump, however, cast doubt on North Korea’s involvement in the hack. “I’m not concerned. We’re learning about it. We don’t know if it’s North Korea,” Trump told reporters at his residence in Florida late Saturday. The president often reflects with pride on summits he held with North Korean leader Kim Jong Un during his first term.
– ‘Cover the financial impact’ – Binance said Saturday it has set aside more than $6.34 billion in company funds to cover losses in the hack. “Our commitment remains the same: Binance will fully cover the financial impact of the funds stolen in this incident,” the company said on X. It said it has used company money to buy tokens to replenish 90 percent of the stolen funds, while the remaining 10 percent of tokens are “less liquid, which means they may take longer to source in the required amounts.”
Binance suspended user withdrawals after the hack, but said in its latest update they were on track to resume Sunday. The attack on Binance came as many observers express worries that the ever-expanding capabilities of artificial intelligence models could compromise cryptography and IT security protocols. Bitcoin plunged nearly five percent after the news of the hack, while Ethereum dropped nearly six percent and BNB, native to Binance, tumbled nearly 10 percent.
Binance said Friday it was working to resolve what it called a “complex attack” with several “points of breach.” The sheer scale of the hack has put a spotlight on the capacity of North Korea — which faces extensive international sanctions over its nuclear and missile programs — to find illicit means to capture revenue. TraderTraitor is believed to be part of the Lazarus Group, which gained notoriety in 2014 when it was accused of hacking into Sony Pictures as revenge for “The Interview,” a film that mocked North Korean leader Kim.
© 2024 AFP
