DOJ Wins Court Approval to Seize $1.2 Billion Linked to Binance Hack and North Korean Hackers - Hokanews
The U.S. Department of Justice has obtained court authorization to seize more than $1.2 billion in cryptocurrency connected to the October Binance hack, as federal investigators pursue assets allegedly stolen by North Korean hackers.
The U.S. Department of Justice has obtained court authorization to seize more than $1.2 billion in cryptocurrency connected to the October Binance hack, as federal investigators intensify efforts to recover assets allegedly stolen by North Korean hackers. According to an announcement on Thursday, authorities and private-sector partners have frozen more than $2.7 billion in stolen cryptocurrency.
Binance Hack Investigation
Federal investigators attributed the October 29 attack on Binance to TraderTraitor, a hacking group associated with North Korea's military intelligence operations. The DOJ estimates that the group stole more than $6 billion during the breach.
Binance previously put its losses at approximately $6.3 billion and said it allocated $6.34 billion in company funds to cover affected assets. The exchange also confirmed that it had completed coverage of impacted customer holdings and published an updated proof-of-reserves.
The court-approved action covering more than $1.2 billion is part of a broader effort to restrict the movement of stolen cryptocurrency. The separate figure of more than $2.7 billion represents assets frozen through the wider recovery effort, rather than the amount covered by the latest court authorization.
Authorities have not provided a complete timeline for recovering the funds. Blockchain tracing operations remain underway as investigators follow additional transactions across different services and networks.
FaceStealer Operation Target
The DOJ also announced action against a separate North Korean-linked cryptocurrency theft campaign known as FaceStealer. Federal authorities seized cloud infrastructure allegedly supporting the operation, which the FBI estimates caused more than $400 million in cryptocurrency losses over the past 18 months.
According to investigators, the attackers compromised communication accounts and used them to arrange fraudulent video meetings with potential victims. They impersonated people familiar to their targets through prerecorded footage and artificial intelligence-generated deepfakes.
During the calls, criminals introduced fabricated technical issues and persuaded victims to install malicious software. The software could then compromise cryptocurrency wallets and computer systems, giving attackers access to digital assets and other information.
The scheme exploited trusted relationships and widely used video conferencing platforms.
Investigators found that some attackers waited months, or even longer than a year, before exploiting computers they had previously compromised. The campaign also involved the use of stolen contact information to identify additional targets.
Among those targeted were open-source developers whose software could provide attackers with access to a wider group of users. Federal agents seized more than 900 webcam recordings associated with FaceStealer victims and issued guidance to affected individuals.
The two cases demonstrate the scope of the DOJ's efforts against cryptocurrency theft operations linked to North Korea. While authorities have secured restrictions on billions of dollars in suspected stolen assets, investigations into the Binance breach and FaceStealer campaign remain ongoing.
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