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The U.S. Department of Justice (DOJ) obtained court approval on Thursday to seize or restrain more than $1.2 billion stolen from the crypto exchange Binance, according to The Block. The department also announced the disruption of a separate North Korean scheme known as FaceStealer, which used fake video calls to steal cryptocurrency.
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Earlier reporting: XRP Whales Deposit 691 Million Tokens Into Binance Amid Price Slide.
Seizure of Binance Hack Funds
The seized funds are part of a larger total of more than $2.7 billion frozen by U.S. authorities and private companies in response to the hack. The DOJ attributed the incident to North Korean military hackers operating under the alias TraderTraitor. The group stole more than $6 billion from Binance around Oct. 29, the department said.
Investigators continue to trace the stolen assets as they move through crypto bridges, mixers, and exchanges. M. Scott Proctor, Principal Deputy Assistant Attorney General for National Security, stated that North Korea’s government bankrolls its rogue regime and illicit weapons program through cryptocurrency theft. He added that the National Security Division will use every tool at its disposal to seize and return North Korea’s ill-gotten gains.
Binance previously reported losses of about $6.3 billion and set aside $6.34 billion in company funds to cover them. Earlier Thursday, the exchange stated it has completed coverage of the assets impacted by the hack and published a new proof of reserves snapshot.
Disruption of FaceStealer Scheme
In a separate action, the DOJ said it seized cloud infrastructure used in the North Korean campaign the FBI calls FaceStealer. The scheme resulted in more than $400 million in crypto theft over the past 18 months, the department said. Hackers used stolen accounts to invite victims to video calls, where they played recordings or deepfakes of familiar people.
During these calls, the attackers faked technical problems to trick victims into installing malware capable of stealing crypto or accessing other systems. Patrick Grandy, assistant director in charge of the FBI’s Los Angeles Field Office, noted that the scheme exploits trust in ubiquitous video conference platforms and valued personal relationships. He warned that if individuals cannot imagine a scenario where they might fall prey to such tactics, they are not thinking creatively enough.
The DOJ reported that in some cases, the theft and takeover of communication accounts occurred months to more than a year after the initial computer compromise. The hackers also used stolen contacts and accounts to target additional individuals, including open-source software developers, potentially to carry out attacks through their software.
Investigative Findings and Guidance
The FBI seized more than 900 webcam videos of FaceStealer victims as part of the investigation. The department also issued guidance for those affected by the scheme. The DOJ did not provide further details on the specific legal proceedings regarding the seizure of the Binance funds beyond the court approval and the ongoing tracing of assets through various crypto platforms.
Source: The Block
