U.S. Authorities Seize $1.2 Billion in Stolen Binance Cryptocurrency

Federal authorities in Washington authorized the seizure of more than $1.2 billion in cryptocurrency stolen from Binance on Thursday, as investigators target North Korean state-sponsored hackers.

The Department of Justice and the Federal Bureau of Investigation announced that U.S. officials and private companies have now frozen more than $2.7 billion of the estimated $6.3 billion taken during the Oct. 29 heist.

Federal law enforcement agencies attributed the record theft from Binance, the world's largest cryptocurrency exchange, to a North Korean military-linked hacking collective known as TraderTraitor.

"North Korea’s government bankrolls its rogue regime and illicit weapons program through cryptocurrency theft," said M. Scott Proctor, a principal deputy assistant attorney general at the Department of Justice.

In a parallel action, federal agents seized cloud infrastructure behind a separate 18-month North Korean campaign called FaceStealer, which authorities say stole more than $400 million in digital assets.

The FaceStealer scheme targeted developers and executives in the cryptocurrency sector by inviting them to fraudulent video meetings on platforms like Zoom and Microsoft Teams, according to the FBI.

Attackers used stolen webcam video and artificial intelligence deepfakes of known contacts, instructing victims to run software commands that secretly downloaded cryptocurrency-stealing malware onto their devices.

"If you can't imagine a scenario where you might fall prey to it, you are not thinking creatively enough," said Patrick Grandy, an FBI assistant director.

Separately, Binance announced on Thursday that it had fully covered all user assets affected by the cyberattack, spending more than $6.34 billion from its corporate treasury and reserve funds.

The exchange said it drew from its futures insurance fund and its Secure Asset Fund for Users, committing to replenish the reserve back to $1 billion.

North Korea denied involvement in the cyberattacks, with Kim Yo-jong, sister of North Korean leader Kim Jong-un, calling the FBI findings a political provocation, Korea JoongAng Daily reported.

The Department of Justice will now file forfeiture claims in federal court to determine how the seized funds will be returned to rightful owners.