U.S. Seizes $1.2 Billion in Cryptocurrency Stolen from Binance in North Korea-Linked Hack - SSBCrack
U.S. authorities have seized or restrained more than $1.2 billion in cryptocurrency linked to a major theft from Binance, the Department of Justice announced.
The theft occurred on Oct. 29 and was attributed to individuals linked to North Korea’s military, whom the FBI identifies as 'TraderTraitor.' The department described the operation as part of the North Korean government’s efforts to finance its regime through large-scale cryptocurrency theft.
The $1.2 billion in assets was subject to court-authorized seizure and restraint. The DOJ said the effort involved its own units, law enforcement partners and virtual asset service providers. In coordinated efforts, more than $2.7 billion of the stolen assets has been frozen.
Authorities are continuing to trace and block the funds, which investigators say 'TraderTraitor' operatives are laundering through multiple cryptocurrency channels. The seizure and freezes represent only part of the response to the theft, and efforts to locate additional assets remain underway.
North Korea’s government bankrolls its rogue regime and illicit weapons program through cryptocurrency theft.
The DOJ also announced the seizure of cloud-based infrastructure allegedly used in a separate identity-impersonation operation known as 'FaceStealer.' The scheme has been linked to more than $400 million in cryptocurrency theft over an 18-month period.
According to the department, 'FaceStealer' operators use compromised accounts and recordings of people familiar to their targets to stage convincing video meetings. They may use AI-generated deepfakes to impersonate those individuals. During the calls, victims are told that a technical issue needs to be fixed and are directed to install software that gives the attackers access to their computers and communications.
The criminals can then steal cryptocurrency and use the victim’s accounts to approach their contacts. The DOJ said the targeting may continue months or even more than a year after the initial computer compromise. People working in cryptocurrency and Web3 businesses are among those at particular risk.
The scheme takes advantage of trust in widely used video-conferencing platforms as well as personal relationships. The Justice Department said it would use available tools to seize and return funds obtained through cybercrime.
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