FBI blames North Korea for record $6.3bn crypto heist from Binance

For context, the FBI has linked North Korea to the theft of a record $6.3bn in virtual assets from cryptocurrency exchange Binance.

Key points

• In a separate statement on Saturday, Binance remarked it has replaced 90 percent of the amount stolen by using business funds to purchase new tokens.
• Malicious actors from North Korea were observed laundering the ⁠stolen assets ⁠by converting them primarily into the cryptocurrency Ethereum, ⁠the FBI remarked in an official note on Saturday.
• The remaining 10 percent consists of less liquid tokens, meaning they ⁠may take longer to purchase, it went on.
• Binance remarked afterwards on Saturday that it was on track to reopen withdrawals on Sunday.
• Binance additionally unveiled the publication of a new proof-of-reserves snapshot, allowing users to independently verify that their assets were backed at a minimum 1: 1 ratio.

Notably, the US agency blamed the operation specifically on a group called TraderTraitor, the same group blamed for a $1.5bn theft from the Bybit platform in February last year.

According to the statement, the assets are projected to be "further laundered" in stages.

In practice, the FBI called on virtual asset service providers to block transactions being applied in the latest laundering operation, providing the suspected digital addresses to watch for.

Meanwhile, the remaining 10 percent consists of less liquid tokens, meaning they ⁠may take longer to purchase, it went on.

"We will continue to purchase the remaining relevant token assets. Until the covered amount reaches 100 for all tokens. Binance will absorb the financial impact of these stolen funds, not our users, " the firm stated on X.

As well as some of its Futures Insurance Fund and the company's corporate treasury, the funds spent re-buying tokens came from a $1bn Secure Asset Fund for Users (SAFU), a Bitcoin reserve fund Binance ⁠holds to protect customers in the event of security ⁠breaches.

Crypto rates fell on Friday, as Binance. It runs the world's largest crypto exchange, sought to reassure customers their funds were safe.

Binance co-CEO Richard Teng remarked on Friday that the breach was a "complex attack" involving a compromised laptop and malicious software designed to ⁠delete evidence of its activity, making it hard to trace and investigate.

After ⁠the hack, the exchange halted allowing customers to withdraw their funds.

For now, FBI blames North Korea for record $6.3bn crypto heist from Binance remains the part of the story worth watching, and further updates are likely as more details are confirmed.