The Federal Bureau of Investigation has identified North Korea as the source of a massive cyberattack that resulted in the theft of $6.3 billion in virtual assets from cryptocurrency exchange Binance. The agency released a statement on Saturday detailing the operation, which it described as a record-breaking heist in the digital asset space.
According to the FBI, the malicious actors involved in the breach are part of a group known as TraderTraitor. This same collective was previously blamed for a $1.5 billion theft from the Bybit platform in February last year. The bureau noted that the stolen assets were primarily converted into Ethereum as part of an ongoing laundering process.
Binance Covers 90 Percent of Losses
In a separate statement issued on Saturday, Binance confirmed that it has replaced 90 percent of the stolen funds. The company stated that it used its own capital to purchase new tokens, effectively covering the majority of the financial impact. The remaining 10 percent consists of less liquid tokens, which the exchange noted may take longer to acquire.
“We will continue to buy the remaining relevant token assets… until the covered amount reaches 100 [percent] for all tokens. Binance will absorb the financial impact of these stolen funds, not our users,” the company said in a post on X. The funds used for this recovery effort were drawn from the Secure Asset Fund for Users (SAFU), a $1 billion Bitcoin reserve held by Binance to protect customers during security breaches. Additional funds were taken from the company’s Futures Insurance Fund and corporate treasury.
Complex Attack and Reopening Withdrawals
Binance co-CEO Richard Teng described the breach as a “complex attack” that involved a compromised laptop and malicious software designed to delete evidence of its activity. This sophisticated approach made the investigation difficult for the exchange and law enforcement. Following the discovery of the hack, Binance temporarily halted customer withdrawals to secure the platform.
The exchange announced on Saturday that it was on track to reopen withdrawals on Sunday. To reassure users about the safety of their funds, Binance also published a new proof-of-reserves snapshot. This document allows users to independently verify that their assets are backed at a minimum 1:1 ratio.
The FBI has urged virtual asset service providers to block transactions associated with the laundering operation. The agency provided specific digital addresses for companies to monitor and prevent further movement of the stolen assets. Crypto prices experienced a decline on Friday as Binance worked to stabilize the market and reassure its customer base.
Source: Al Jazeera
