Key Insights: In the latest crypto hack news, the US DOJ seized $1.2B in Binance assets. Authorities have frozen more than $2.7 billion of assets linked to the Binance theft. FaceStealer stol
The US DOJ obtained court authorization to seize or restrain over $1.2 billion in crypto hack tied to Binance’s October theft.
The FBI attributed the breach to North Korean military members it calls TraderTraitor. Following the Binance crypto hack, more than $2.7 billion has been frozen through government and private-sector efforts, according to the Justice Department.
This US DOJ update also covers the separate FaceStealer campaign, which stole more than $400 million over 18 months.
The Binance theft occurred on or about October 29 and involved more than $6 billion in virtual assets. Since the crypto hack news, federal agencies have worked with virtual asset service providers to identify and block the stolen funds.
The department has obtained court authorization to seize or restrain more than $1.2 billion of the frozen amount.
TraderTraitor actors continue moving assets through cryptocurrency bridges, mixers, and exchanges, authorities said.
In response, the FBI, the U.S. Secret Service, and the IRS Criminal Investigation recently issued a Cyber Alert about the theft. It urged providers to block transactions involving addresses used to launder Binance assets.
US DOJ to seize $1.2 billion on crypto news hack involving Binance Credit: Source: US DOJ
The Justice Department’s National Security Cyber Section and Criminal Division are coordinating with the District of Columbia U.S. Attorney’s Office. The FBI’s Los Angeles Field Office, Cyber Division, and Virtual Asset Unit are also aiding recovery. In addition, the agencies are tracing the stolen cryptocurrency and pursuing recovery.
Separately, in addition to the crypto hack update, federal authorities disrupted cloud infrastructure used in FaceStealer, a social engineering campaign.
The FBI says the scheme targeted cryptocurrency and Web3 workers, and increasingly people maintaining open-source software. Investigators said the attempted access could enable software supply-chain attacks. The campaign stole more than $400 million over the past 18 months.
According to the U.S. Department of Justice report, operators sent video-meeting invitations from accounts stolen from earlier victims. During calls, they recorded targets’ webcams and played videos of people known to them.
They also used deepfakes of influential figures in cryptocurrency and Web3. According to the crypto hack report, the staged meetings were designed to build trust before the operators introduced a false technical problem.
The operators then directed targets to a link or prompt presented as a fix. That step secretly installed malware on the target’s computer. The operators could then steal cryptocurrency or exploit access to other systems.
The hackers also accessed victims’ contact lists, social media, and messaging apps to reach personal and professional contacts.
Under a federal warrant, the FBI seized more than 900 webcam videos of FaceStealer victims. The FBI also published a report describing the scheme and steps victims could take after a compromise.
The Justice Department said FaceStealer and the Binance theft are separate matters. FaceStealer involved deceptive video meetings and malware, while the Binance case concerns assets stolen in October.
In addition to the crypto hack update, the U.S. Attorney’s Office for the Central District of California and the FBI’s Los Angeles Field Office led the disruption of the FaceStealer infrastructure.
Meanwhile, federal efforts to trace, freeze, seize, and forfeit the Binance assets remain ongoing. Authorities said TraderTraitor actors continue laundering funds through multiple services.
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