North Korea denies involvement in $6.3 billion Binance cryptocurrency theft

North Korea has denied allegations that it was responsible for a record $6.3 billion (£4.7bn) hack of the cryptocurrency exchange Binance, calling the claims "absurd rhetoric."

Allegations and Attribution

The FBI, the Secret Service, and various cyber analysts have attributed the theft to North Korea. According to the FBI, the attack was orchestrated by a state-backed hacking group known as TraderTraitor. Blockchain intelligence firm TRM Labs stated it attributed the attack to the TraderTraitor group with "high confidence," citing onchain and offchain intelligence.

Other investigators, including Chainalysis and ZachXBT, have also linked the theft to North Korean hackers. TRM Labs noted similarities to previous North Korean attacks, such as the use of Tornado Cash to fund attacker wallets. The FBI has called on industry partners to help block transactions involving cryptocurrency accounts linked to the group.

North Korea's Response

Kim Yo-jong, a top Democratic People's Republic of Korea official and the sister of leader Kim Jong Un, issued a statement on Tuesday via the Korean Central News Agency (KCNA) rejecting the claims. Kim described the accusations as a "sinister attempt" by the US to damage Pyongyang's public image and a "grave political provocation."

"The US has made a trite provocation of linking it with the Democratic People's Republic of Korea again," Kim Yo-jong said in a statement. She further stated, "It is a grave political provocation against the DPRK that the US misleads the international public opinion as if all the cyber crimes in different parts of the world are our deeds."

Kim also suggested the US might be involved, stating, "If it carefully examines who will get the large amount of the so-called stolen cryptocurrency when the latter is retrieved, it may get a clue about who is behind the hacking incident."

Binance's Response and Recovery

Binance, the world's largest cryptocurrency exchange, reported that the breach involved unauthorized withdrawals from hot wallets across ten blockchains. The company stated that initial checks indicated an engineer's laptop had been compromised, enabling the attacker to make unauthorized withdrawals.

Regarding the financial impact and recovery:

• Binance said it has so far covered around 95% of the assets stolen in the breach.
• The company stated it would cover all losses linked to the attack.
• Binance reported that customers pulled out more than $3.6bn of assets from the exchange as it reopened after suspending transactions.
• Binance used corporate reserves, its Futures Insurance Fund, and 50% of its $1-billion Secure Asset Fund for Users (SAFU) to buy replacement tokens.
• Binance and industry partners have located $3 billion in affected funds.

Why it matters

The $6.3 billion theft is described by investigators as the largest cryptocurrency heist in history. The incident follows previous major hacks linked to North Korea, including a $1.5 billion hack of the Bybit exchange in 2025.

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Sources

• bbc.com: North Korea denies being behind $6.3bn Binance crypto hack
• tradingview.com: North Korea denies role in $6.3B Binance hack, points finger at US — TradingView News
• economictimes.indiatimes.com: 'A trite provocation': North Korea denies involvement in $6 billion Binance hack, criticizes FBI probe - The Economic Times
• inkl.com: North Korea rejects US allegations over $6 billion…
• businesstimes-bd.com: Binance Replaces $6 Billion Stolen in North Korea Crypto Hack
• cryptobriefing.com: North Korea denies involvement in $6.3B Binance hack, calls FBI claims absurd

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.