The FBI said on November 1 that a group linked to North Korea, called TraderTraitor, stole a record $6.3 billion in crypto from Binance and converted the stolen assets primarily into Ethereum. The U.S. agency identified the theft as a major laundering operation that could be further processed in stages. It urged virtual asset service providers to block the related transactions, providing a list of suspected addresses to watch for.
In a separate statement, Binance announced it had replaced 90% of the stolen amount by buying new tokens with the company’s Secure Asset Fund for Users, its Futures Insurance Fund and corporate treasury. The remaining 10% of the loss consists of less liquid tokens that the firm expects to buy later. The company pledged to absorb the financial impact for its customers.
Binance spokesman on X said,
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 move came after a sharp fall in crypto prices on Friday as Binance worked to reassure customers that their funds were safe. The theft has prompted the FBI to focus further attention on crypto exchanges as carriers for illicit funds.
