US gets court authority over $1.2B in Binance hack funds

The U.S. Justice Department on Nov. 12 said it had obtained court authorization to seize or restrain more than $1.2 billion in cryptocurrency stolen from Binance, while efforts to trace and recover the funds continue. The department’s announcement described the action as part of a broader effort with law enforcement partners and virtual asset service providers.

The $1.2 billion is part of more than $2.7 billion in stolen assets frozen through combined U.S. government and private-sector efforts, according to the Justice Department. The Associated Press reported that the government typically files a forfeiture claim with a judge, who then determines who has a legitimate claim to recovered funds.

• More than $6 billion stolen: The Justice Department said North Korean military members known to the FBI as TraderTraitor stole the virtual assets from Binance on or about Oct. 29. The AP put the theft at about $6.3 billion.
• More than $2.7 billion frozen: This is the total cited by the Justice Department for efforts by U.S. agencies and private-sector partners since the theft.
• More than $1.2 billion targeted by court authorization: This amount is included in the frozen total and is authorized for seizure or restraint, the department said.

The Justice Department said the hackers continue to launder assets through cryptocurrency bridges, mixers and exchanges. The FBI, Secret Service and IRS Criminal Investigation are coordinating recovery efforts, while the department said tracing, freezing, seizure and forfeiture work remains ongoing.

The FBI has attributed the Binance theft to TraderTraitor, according to the Justice Department. Any forfeiture claims will go before a judge, who will determine who has a legitimate claim to recovered funds.

Source material

• announcement — justice.gov
• reported — apnews.com