US secures court authority over $1.2B in Binance theft

The U.S. Justice Department said Nov. 12 it had court authorization to seize or restrain more than $1.2 billion in cryptocurrency stolen from Binance, according to its announcement. The FBI attributes the theft to North Korean military members it calls TraderTraitor.

The figures describe different stages of the response:

• More than $6 billion stolen: The Justice Department says the theft occurred on or about Oct. 29. The Associated Press reported the FBI had previously put the loss at about $6.3 billion.
• More than $2.7 billion frozen: U.S. government and private-sector efforts have frozen this amount in total, according to the Justice Department.
• More than $1.2 billion targeted by court action: This is part of the frozen total. The department says it obtained authorization to seize or restrain those assets; that does not mean the funds have already been returned to victims.

The distinction matters because freezing assets can block their movement while investigators pursue legal action. The Justice Department says U.S. authorities and private firms worked with virtual asset service providers to interdict the funds. The AP reports the government typically files a forfeiture claim with a judge, who determines who has a legitimate claim to recovered assets.

Investigators say TraderTraitor actors are still laundering the stolen assets through cryptocurrency bridges, mixers and exchanges. The FBI has urged virtual asset service providers to block transactions involving addresses used to move the Binance funds, according to the Justice Department.

The FBI’s recovery effort is being coordinated by its Los Angeles Field Office, Cyber Division and Virtual Asset Unit, with the U.S. Secret Service and IRS Criminal Investigation. The Justice Department says tracing, freezing, seizure and forfeiture efforts remain ongoing.

Source material

• announcement — justice.gov