FBI Accuses NKorea of Standing Behind $6 Billion Crypto Theft from Binance - ASHARQ AL-AWSAT English
The FBI has accused North Korea of stealing more than $6 billion in virtual assets from the world's largest cryptocurrency exchange, Binance, in what is thought to be the biggest-ever crypto heist.
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 agency confirmed that malicious actors from North Korea were observed laundering the stolen assets by converting them into ethereum. It expects further laundering stages for the stolen digital assets.
The FBI identified the group behind the hack as TraderTraitor, the same group blamed for a $1.5 billion theft from the Bybit platform in February last year. TraderTraitor is believed to be part of the Lazarus Group, which gained notoriety in 2014 when it was accused of hacking into Sony Pictures.
Binance pledges full compensation
Binance, the world's largest crypto exchange by daily trading volumes, has set aside more than $6.34 billion in company funds to cover the losses. The company said it has used its own money to buy tokens to replenish 90 percent of the stolen funds.
The remaining 10% 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.
"Our commitment remains the same: Binance will fully cover the financial impact of the funds stolen in this incident," the company said on X.
Market reaction and political response
News of the cyberattack caused the prices of most major cryptocurrencies to fall sharply on Friday. Bitcoin plunged nearly 5%, while Ethereum dropped nearly six percent and BNB, the native token of Binance, tumbled nearly 10%.
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.
Security concerns and next steps
Binance said Friday it was working to resolve what it called a "complex attack" with several "points of breach." The agency urged private sector entities to block transactions with or derived from addresses TraderTraitor actors are using to launder these stolen assets.
The attack on Binance has occurred as many observers express worries that the ever-expanding capabilities of artificial intelligence models could compromise cryptography and IT security protocols.
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