US seizes $1.2 billion in stolen Binance crypto - Indiablooms
US authorities have seized more than $1.2 billion worth of cryptocurrency stolen from Binance last month, as Washington intensifies action against North Korean cybercriminals.
The Department of Justice (DoJ) announced coordinated actions targeting the Democratic People's Republic of Korea (DPRK) government's schemes to generate revenue through cryptocurrency thefts. These measures include the seizure of cloud-based infrastructure used in a North Korean social engineering operation known as 'FaceStealer', which has resulted in the theft of more than $400 million worth of cryptocurrency.
The US Attorney's Office for the Central District of California announced the disruption of cloud-based infrastructure used by North Korean hackers in the FaceStealer campaign, which the FBI described as a highly effective social engineering operation.
FaceStealer Operation
The scheme, which relies on secretly recorded webcam videos and artificially generated deepfakes, has resulted in cryptocurrency thefts exceeding $400 million over the past 18 months. North Korean hacking groups have reportedly lured targets into fraudulent video meetings using invitations sent from accounts previously stolen from other victims.
Once a target joins the meeting, the hackers record the individual's webcam footage and play prerecorded videos featuring people known to the victim. The hackers also use artificial intelligence to create deepfake videos of prominent figures, particularly those associated with the cryptocurrency and Web3 industries.
During these meetings, the attackers introduce a fabricated technical problem, such as claiming that the target's microphone is not working properly. They then provide a link or instructions purportedly designed to resolve the issue, which secretly installs malware on the target's computer.
Binance Theft
Separately, on or about October 29, North Korean military-linked hackers, identified by the FBI as the 'TraderTraitor' group, stole more than $6 billion worth of virtual assets from cryptocurrency exchange Binance.
Following the theft, multiple US government agencies worked closely with virtual asset service providers (VASPs) to trace and intercept the stolen funds. Joint efforts have so far resulted in the freezing of more than $2.7 billion worth of assets, with the Department of Justice obtaining court authorization to seize or restrain more than $1.2 billion.
Efforts to trace, freeze, seize and forfeit the stolen cryptocurrency are continuing, as TraderTraitor-linked hackers attempt to launder the assets through cryptocurrency bridges, mixers and exchanges.
Government Response
Last week, the FBI, in coordination with the US Secret Service and the Internal Revenue Service's Criminal Investigation division, issued a cyber alert formally attributing the theft to North Korea.
The alert urged virtual asset service providers to block transactions involving cryptocurrency addresses used by TraderTraitor actors, including transactions involving funds derived from the stolen Binance assets. Under a federal warrant, the FBI also seized more than 900 webcam videos belonging to FaceStealer victims.
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