U.S. seizes $1.2 billion in cryptocurrency stolen from Binance

Visual China Group | Getty ImagesU.S. authorities have seized around $1.2 billion in virtual assets stolen from cryptocurrency exchange Binance last month, the Department of Justice said Thursday, as it vowed action to tackle cyberscams originating from North Korea. Over $6 billion was stolen from industry giant Binance on Oct. 29, which the DOJ attributed to actors linked to the North Korean military.Collective efforts between the U.S. government and private sector have resulted in more than $2.7 billion of that amount being frozen. The FBI blames the attack, which shook confidence in crypto market security, on members of the North Korean military it refers to as "TraderTraitor." The DOJ said it was taking coordinated action against what it called the North Korean government's "schemes to fund its regime through the massive theft of cryptocurrency."That includes "the court-authorized seizure and restraint of more than $1.2 billion worth of cryptocurrency recently stolen from Binance," it said.DOJ units, law enforcement partners and virtual asset service providers have been working to intercept the stolen assets.But efforts to track and freeze the assets are ongoing, as TraderTraitor actors continue to launder them through various cryptocurrency channels.Authorities have also seized cloud-based infrastructure used in a massive identity impersonation scam known as "FaceStealer," which has seen more than $400 million worth of cryptocurrency stolen over 18 months, the DOJ said.The scheme sees hackers set up fake video meetings using stolen accounts and recordings of people known to the target by using AI-generated deepfakes. The hackers then say a technical problem requires a fix, install malware on a computer and take over the victim's communications, steal their cryptocurrency and target their contacts — sometimes months or more than a year after the initial compromise.Individuals working in the cryptocurrency and web3 industries are prime targets. Assistant Director in Charge Patrick Grandy, of the FBI's Los Angeles Field Office, called FaceStealer "a highly effective social engineering scheme capable of deceiving even the most experienced technical and security conscious computer user." "It exploits our trust in ubiquitous video conference platforms and valued personal relationships. If you can't imagine a scenario where you might fall prey to it, you are not thinking creatively enough," Grandy added."North Korea's government bankrolls its rogue regime and illicit weapons program through cryptocurrency theft," Principal Deputy Assistant Attorney General for National Security M. Scott Proctor said in a statement. "America will fight back against that corrupt regime's effort to profit through cybercrime. The National Security Division will use every tool at its disposal to seize and return North Korea's ill-gotten gains."