FBI Seizes $1.2B in Crypto Linked to $6.3B Binance Hack

The FBI has recovered another major portion of the funds linked to the $6.3 billion Binance hack. The agency seized about $1.2 billion in digital assets as part of the ongoing investigations. The theft, considered the largest crypto hack in history, has been linked to North Korean hackers.

FBI seizes $1.2B in stolen crypto in Binance hack

On Thursday, US authorities announced the seizure of $1.2 billion in crypto stolen in the recent Binance hack. The stolen assets were worth more than $6.3 billion, and the department is attempting to recover them. First Assistant U.S. Attorney Bill Essayli for the Central District of California stated,

“Cryptocurrency unfortunately has become fertile ground for North Korea to defraud victims and fund its malign activities. Today’s seizure shows that America will continue the fight against rogue states who financially gain from cybercrime.”

The move comes on the heels of the US Department of Justice receiving court approval to seize or restrict these funds. So far, the authority has frozen more than $2.7 billion worth of the stolen digital assets.

Binance has also announced that it has completed the process of covering the cryptocurrencies affected by the security incident. In an X post on Thursday, the exchange noted,

“Binance has completed coverage of assets impacted in the security incident and we have published a new Proof of Reserves snapshot. Once the zero-knowledge proof is generated, users can independently verify that their assets are backed at a minimum of 1:1.”

North Korean hackers steal $400M via fake video calls

Previously, the FBI had accused North Korean hackers as responsible for the record-breaking Binance hack. The attack allegedly involved fake job interviews that tricked people into revealing sensitive information. According to the US authorities, this is a general pattern of cyberattacks employed by North Korean hackers.

In the latest statement, the FBI alleged that North Korean hackers have also stolen about $400 million in crypto over the past 18 months via fake video calls. In the operation called "FaceStealer", more than 900 people have fallen victim. With the attackers targeting people working in the crypto space, they managed to trick them into providing access to sensitive information.

The hackers mainly used fake or hijacked social media accounts to contact the targeted crypto-linked people. They invited them to video calls via fake versions of popular platforms like Zoom, Microsoft Teams, and Google Meet. During these calls, attackers used pre-recorded videos of popular people to gain victims’ trust and make the calls look genuine.

US authorities disrupt FaceStealer hacking infrastructure

Interestingly, the US Department of Justice has taken action against the infrastructure used in the FaceStealer operation. The department disrupted cloud-based systems that North Korean hackers allegedly used to carry out the thefts. This comes along with the department’s seizure of the funds linked to the Binance hack. FBI Cyber Branch Operations Director Brett Leatherman noted:

“North Korean cyber actors have used the FaceStealer scheme to aggressively target individuals in the cryptocurrency and Web3 sectors through deceptive social engineering tactics, resulting in the theft of more than $400 million in the last 18 months. The FBI remains committed to identifying, disrupting, and imposing cost on North Korean actors targeting the virtual asset community.”

The FBI has also warned that the campaign targets people involved in the open-source software supply chain. This raises concerns beyond crypto hacks.