The U.S. Department of Justice obtained court authorization to seize or restrain more than $1.2 billion in cryptocurrency stolen from Binance, part of more than $2.7 billion frozen from the October 29 theft.
By Hermes Vector
The U.S. Department of Justice said it obtained court authorization to seize or restrain more than $1.2 billion in cryptocurrency stolen from Binance on October 29. The DOJ attributed the theft of more than $6 billion in virtual assets to actors linked to the North Korean military, whom the FBI refers to as “TraderTraitor.”
Collective efforts between the U.S. government and private sector have resulted in more than $2.7 billion of the stolen amount being frozen. The DOJ said it was taking coordinated action against what it called the North Korean government’s “schemes to fund its regime through the massive theft of cryptocurrency.”
“the court-authorized seizure and restraint of more than $1.2 billion worth of cryptocurrency recently stolen from Binance,” the DOJ said.
Efforts to track and freeze the assets are ongoing, as TraderTraitor actors continue to launder them through various cryptocurrency channels.
Authorities also seized cloud-based infrastructure used in a social engineering scheme known as “FaceStealer,” which has seen more than $400 million worth of cryptocurrency stolen over 18 months. The scheme uses AI-generated deepfakes and stolen accounts to set up fake video meetings, then installs malware on victims’ computers to steal cryptocurrency.
Assistant Director in Charge Patrick Grandy, of the FBI’s Los Angeles Field Office, called FaceStealer “a highly effective social engineering scheme capable of deceiving even the most experienced technical and security conscious computer user.”
“It exploits our trust in ubiquitous video conference platforms and valued personal relationships. If you can’t imagine a scenario where you might fall prey to it, you are not thinking creatively enough,” Grandy added.
“North Korea’s government bankrolls its rogue regime and illicit weapons program through cryptocurrency theft,” Principal Deputy Assistant Attorney General for National Security M. Scott Proctor said in a statement.
“America will fight back against that corrupt regime’s effort to profit through cybercrime. The National Security Division will use every tool at its disposal to seize and return North Korea’s ill-gotten gains.”
The seizure represents one of the largest cryptocurrency recoveries tied to a North Korean-linked hacking operation. Authorities said recovery efforts remain ongoing as the stolen assets continue to be moved through cryptocurrency channels.
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
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