Eric Schiffer, president of Patriarch and Reputation Management Consultants, warns that the $6.3 billion Binance hack could signal a wave of cyberattacks.
The FBI said Saturday that North Korean hackers were responsible for stealing more than $6 billion in cryptocurrency from Binance this week, linking one of the largest digital asset thefts in history to the regime in Pyongyang.
The announcement marks the first public confirmation by U.S. federal investigators of North Korea’s role in the attack, following earlier assessments by private cybersecurity researchers.
The FBI has identified the North Korean cyber activity as a “TraderTraitor,” saying hackers stole more than $6 billion in virtual assets from Binance, the world’s largest cryptocurrency exchange, on Thursday.
The FBI said it and its partners at the U.S. Secret Service and IRS Criminal Investigation observed the hackers convert the stolen assets primarily into Ethereum (ETH).
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The FBI has attributed the theft of more than $6 billion in cryptocurrency from Binance to North Korean cyber activity known as “TraderTraitor.” (KCNA via Reuters/Reuters)
Authorities said they expected assets to be further laundered through decentralized finance (DeFi) platforms and instant cryptocurrency exchange services.
Federal officials are now urging cryptocurrency exchanges, blockchain analysis companies and other digital asset service providers to block transactions involving wallet addresses linked to stolen funds to prevent hackers from moving or laundering assets.
President Donald Trump also addressed the issue Saturday, saying his administration was still gathering information about the possible involvement of North Korean hackers.
“I’m not worried. We’re learning more. We don’t know if it’s North Korea, but if it is, we’ll talk to them about it,” Trump told reporters.
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Binance temporarily suspended deposits and withdrawals following a security incident that founder Changpeng Zhao said appeared to be a hack. (Omar Marques/SOPA Images/LightRocket via Getty Images / Getty Images)
Binance said on Saturday it had replenished about 90% of the stolen assets, covering about $6 billion of the estimated $6.3 billion loss.
The exchange said major cryptocurrencies including Bitcoin, Ethereum, Tether and BNB were fully supported, while continuing to purchase less liquid tokens via market and over-the-counter transactions.
“Binance will absorb the financial impact of these stolen funds, not our users,” the exchange said.
Binance first disclosed the breach on Thursday, saying hackers stole approximately $6.3 billion in digital assets.
The scale of the theft was highlighted by Eric Schiffer, president of Patriarch and Reputation Management Consultants, who previously told FOX Business that the incident highlights the growing cybersecurity challenges facing large financial institutions.
“I consider this one of the greatest thefts of all time, and it’s sad,” Schiffer said.
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President Donald Trump said his administration is examining whether North Korea was responsible for the massive hack of the Binance cryptocurrency. (Reuters/Evan Vucci/Reuters)
He warned that the incident could be the start of a broader wave of increasingly sophisticated cyberattacks, especially as artificial intelligence becomes more powerful.
“I think the bloodbath of AI hacking is coming,” he said. “And there’s going to be a lot more pain.”
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