North Korea denies US allegations regarding $6 billion Binance crypto theft

North Korea has dismissed US allegations that it was behind a $6 billion cryptocurrency theft from the Binance platform, calling the claims "absurd rhetoric," according to state news agency KCNA.

Allegations and Attribution

The FBI stated at the weekend that North Korea was responsible for the theft of more than $6 billion in virtual assets from Binance, which is the world's biggest cryptocurrency exchange. Law enforcement identified the perpetrators as members of a North Korean state-sponsored unit known as TraderTraitor. According to the FBI, investigators observed the group converting the stolen assets to the cryptocurrency Ethereum and expected them to launder the assets further.

Blockchain intelligence firm TRM Labs also attributed the attack to North Korea's TraderTraitor group with high confidence, citing blockchain transaction patterns and other intelligence. Similarly, blockchain analysis firms TRM Labs and Chainalysis noted that the bulk of the theft took place over approximately 20 minutes late Thursday and bore similarities to previous major attacks blamed on North Korea.

North Korean Response

Kim Yo Jong, a ruling party official and the sister of leader Kim Jong Un, issued a denial through KCNA. Kim accused the FBI of trying to "brand the DPRK as a 'cybercriminal state,' claiming that it obtained information that a hacking organisation 'supported' by the DPRK was involved in the incident," KCNA quoted Kim as saying.

Kim further stated, "It is a grave political provocation against the DPRK that the US misleads international public opinion as if all the cybercrimes in different parts of the world are our deeds." Kim also warned that North Korea has "issues to reconsider" due to what she described as the "very unpleasant US hostile attitude."

Impact on Binance and Markets

Binance has stated it has covered most of the assets stolen from the platform by using company money. Co-CEO Richard Teng described the breach as a "complex attack" involving a compromised laptop and malicious software designed to delete evidence, which made it difficult to trace and investigate. Teng noted that the hackers manipulated a system used to approve transactions, allowing them to move money from a Binance-controlled, internet-connected "hot" wallet without normal approval controls.

According to reports regarding the aftermath:

• Binance has since replenished approximately 95% of affected assets using company funds.
• The exchange stated it had internally set aside around $6.34 billion of company funds to cover the losses.
• On November 1, Binance processed $4.649 billion in withdrawals and $1.01 billion in deposits, resulting in net outflows of approximately $3.64 billion.
• Stablecoin issuers, including El Salvador-based Tether and the Trump-backed World Liberty Financial, froze about half of the stolen assets.
• Tether reported it had frozen nearly $1.57 billion in assets linked to the attack, while Circle froze more than $800 million.

Following the news of the breach, cryptocurrency prices fell. Bitcoin touched a six-week low of $76,368, while ether fell more than 3% to a two-month low of $2,178 before both recovered some ground. Binance's BNB token was down 6.74% over 24 hours at $698.

Why it matters

Cybersecurity experts state that North Korean hackers are among the world's most prolific crypto thieves and that the proceeds help fund the country's weapons programmes. Ari Redbord, global head of policy and government affairs at TRM, said, "When North Korea steals at this scale, the money supports weapons proliferation, which makes this a national security issue, not just a crypto theft."

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Sources

• france24.com: North Korea rejects US allegations over $6 billion Binance crypto heist - France 24
• internazionale.it: North Korea says US allegations linking it to Binance heist are ‘absurd rhetoric,’ KCNA says - Internazionale
• irishsun.com: Binance hit by $6.3 billion hack blamed on North Korea
• cryptobriefing.com: North Korea denies involvement in $6.3B Binance hack, calls FBI claims absurd
• timesnownews.com: Kim Jong Un's Sister Rejects US Claim North Korea Behind $6.3 Billion Binance Hack, Calls It 'Political Provocation' | Times Now

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