U.S. Targets $1.2B in Binance Hack Funds, Seizes Scam Infrastructure

U.S. authorities have court approval to seize or restrain more than $1.2 billion in crypto stolen from Binance, and have separately seized cloud infrastructure used in a scam tied to more than $400 million in losses.

The Justice Department said the approved amount is part of more than $2.7 billion in funds frozen through government and private-sector efforts. Investigators are continuing to trace, freeze and pursue forfeiture of the remaining assets as the attackers move money through crypto bridges, mixers and exchanges.

The department said the actions target North Korea’s efforts to finance its government through crypto theft. It identified North Korean military members as responsible for stealing more than $6 billion in virtual assets from Binance on or about Oct. 29. The FBI calls the group “TraderTraitor.”

Separately, authorities seized cloud-based infrastructure used in FaceStealer, a scheme that stole more than $400 million in crypto over 18 months. FBI Los Angeles Field Office Assistant Director in Charge Patrick Grandy described the operation as a social-engineering scheme that can deceive even experienced technical users by exploiting trust in video-conferencing platforms and personal relationships.