“The Democratic People’s Republic of Korea was responsible for the theft of cryptocurrency exchange Binance on or about October 7,” a US law enforcement agency said in a statement.
The theft, which occurred within a matter of minutes, is believed to be the largest cryptocurrency heist in history.
The stolen assets included bitcoin, ethereum, and stablecoins such as tether and USD Coin, which are pegged to the value of traditional currencies.
News of the cyberattack caused the prices of most <a malicious cyber activity" by an entity known as TraderTraitor, the same actors responsible for a $1.5 billion Bybit hack last year.
The agency noted it had “observed TraderTraitor actors converting stolen assets” primarily into a cryptocurrency called ethereum.
“It is expected these assets will then be further laundered by converting them using DeFi [decentralized finance] and instant swap services as they prepare them for further laundering stages,” it added.
The FBI requested that crypto exchanges, blockchain analytics firms, and other entities block transactions associated with specific addresses to prevent the funds from being laundered and their origins obscured.
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What did Binance say about the heist?
Binance stands as the world’s largest crypto exchange by daily trading volume.
The exchange announced on Saturday that it was utilizing company funds totaling over $6.34 billion to purchase tokens, effectively replenishing approximately 90% of the assets taken during the attack.
The remaining 10% comprised less liquid tokens, which the company noted may require more time to repurchase.
“Our commitment remains the same: Binance will fully cover the financial impact of the funds stolen in this incident,” the company said on X.
The heist occurred amid mounting concerns that the evolving capabilities of artificial intelligence models could jeopardize cryptography and IT security protocols.
