FBI seizes $1.2bn in crypto stolen from Binance - ITWeb
The FBI has seized and restrained more than $1.2 billion in cryptocurrency stolen from Binance in a recent hack, part of efforts to disrupt North Korea's crypto theft operations.
The Federal Bureau of Investigation (FBI) has seized and restrained more than $1.2 billion (R20.6 billion) in cryptocurrency stolen from the recent Binance hack. This forms part of the law enforcement agency's coordinated efforts to disrupt North Korea's crypto theft operations.
Last month's hack, which Binance described as a major security breach, saw hackers steal an estimated $6.3 billion in cryptocurrency from the world's largest cryptocurrency exchange. Blockchain intelligence firm TRM Labs described the incident as the biggest cryptocurrency theft on record, surpassing the $1.5 billion Bybit hack in February 2025.
The attackers targeted Binance wallets across 10 blockchain networks. The recent FBI action also includes the seizure of cloud-based infrastructure allegedly used in FaceStealer, a North Korean social engineering campaign targeting cryptocurrency holders and individuals working in the open-source software supply chain.
North Korean Cyber Operations
According to a statement from the US Department of Justice (DOJ), FaceStealer has resulted in the theft of more than $400 million worth of cryptocurrency. The department says the coordinated actions are aimed at disrupting schemes operated by the Democratic People's Republic of Korea government to generate revenue through cryptocurrency theft.
The DOJ says the seizures form part of its efforts to recover cryptocurrency proceeds linked to North Korean cyber crime operations. The National Security Division will use every tool at its disposal to seize and return North Korea's ill-gotten gains.
Binance's Expansion Strategy
Larry Cooke, director at Binance for Africa, told ITWeb TV that cryptocurrency scams, social engineering and market volatility remain significant obstacles to wider digital asset adoption in Africa. He noted that the local cryptocurrency industry faces two broad categories of risk: fraudulent schemes targeting users and potential financial losses resulting from unfavorable market conditions.
Cooke, who visited the ITWeb TV studios before the hack on 28 October, said criminals are increasingly exploiting people's limited understanding of digital assets, using impersonation tactics to imitate reputable financial service providers. Binance has over 350 million users globally, and the company wants to evolve into a financial super app incorporating traditional financial products and services.
Criminals have even used pictures of Binance staff and gone on LinkedIn and started projects and gone on WhatsApp groups and, you know, tried to bring people in and say, we are from Binance. So, first of all, don't believe it – if something sounds too good to be true – it's too good to be true.
Cooke acknowledged that beyond fraudulent activity, cryptocurrency investments carry financial risks, particularly where investors purchase assets without understanding the underlying technology or market dynamics. He distinguished between cryptocurrencies used for investment purposes and stablecoins, which are typically pegged to conventional currencies.
Binance's strategy includes expanding partnerships with payment service providers, retailers, telecommunications companies and other financial services businesses to increase the practical uses of digital assets. The company wants to expand access to digital asset services among consumers who have traditionally been excluded from certain investment opportunities.
Cooke says partnerships with voucher providers could potentially allow lower-income consumers to access tokenized assets, while commercial collaborations could make cryptocurrency payments available across different retail environments. The broader strategy is to position cryptocurrency as an additional financial tool, rather than limiting its use to investment and trading, he explained.
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