US and Private Sector Freeze $2.7 Billion in Crypto Stolen in Binance Heist - PYMNTS.com
U.S. authorities and private sector entities have frozen over $2.7 billion of the $6 billion worth of virtual assets stolen from Binance in late October, the Department of Justice announced Thursday.
The freeze represents a significant recovery in what has been described as the largest cryptocurrency theft in history. The stolen assets were taken from Binance on or around October 29, with the perpetrators identified as members of the North Korean military referred to by the FBI as "TraderTraitor."
The hackers continue to launder the stolen virtual assets through cryptocurrency bridges, mixers and exchanges, according to the DOJ. The department obtained court authorization to seize or restrain more than $1.2 billion of the stolen amount.
Binance Response
Binance has committed more than $6.34 billion in company funds to cover the losses from the security incident. The company published a new Proof of Reserves snapshot showing which assets are fully accounted for.
The coverage was funded through a combination of the Secure Asset Fund for Users (SAFU), portions of Binance's Futures insurance fund, and corporate treasury funds. Binance has committed to replenishing the SAFU to return it to about $1 billion.
Investigation Details
Blockchain company Elliptic reported that the hackers were using memecoins to launder some of the proceeds. Binance revealed on November 3 that the hack resulted from a sophisticated, multi-stage campaign that began in June.
Following the theft, Binance initially halted withdrawals but has since begun reopening them in phases while enhancing its security infrastructure. The investigation continues as authorities work to recover the remaining stolen assets.
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