Finance1 min read

Binance hack: Investigators in a 'cat and mouse game' to recover $6.3 billion in stolen funds

By · Published by Everything Blog

In short

Investigators from TRM Labs and Chainalysis are closely tracking the perpetrators, who are deploying automated wallet bouncing and moving funds to Tron addresses to obscure the trail. Although stablecoin issuers Tether and Circle swiftly froze roughly $3 billion of the stolen haul, the hackers countered by trading vulnerable assets for ether, which cannot be frozen. In addition to technical evasion strategies, the North Korean operatives are partnering with professional Chinese money laundering syndicates to cash out into traditional fiat currency. Binance has officially pledged to draw from its Secure Asset Fund for Users to ensure all customer losses are fully covered.

Key points

  • Binance plans to fully absorb customer losses by deploying capital from its dedicated Sec…: Binance plans to fully absorb customer losses by deploying capital from its dedicated Secure Asset Fund for Users.
  • The illicit syndicate is leveraging automated wallet shuffling and Tron addresses to conc…: The illicit syndicate is leveraging automated wallet shuffling and Tron addresses to conceal remaining token trails from forensic investigators.
  • Global law enforcement faces an urgent challenge as the hackers collaborate with Chinese…: Global law enforcement faces an urgent challenge as the hackers collaborate with Chinese laundering networks to convert crypto into fiat currency.

Sources checked by our analysis pipeline: 1

Crypto firms and law enforcement are racing to recover more than $6 billion worth of cryptocurrency stolen from Binance before hackers manage to hide the funds.

The firms say they're in a "cat and mouse game" against alleged North Korean hackers who are using a combination of crypto obfuscation techniques and professional global money laundering networks to turn their digital coins into fiat currency, according to experts who spoke to CNBC.

These moves underscore how hard it can be to recover the stolen funds after a crypto hack.

"Ultimately, they're [hackers] trying to off-ramp it [crypto] to fiat. And that becomes the challenge, that's sort of this race against time," Ari Redbord, global head of policy at TRM Labs, one of the companies investigating the Binance hack, told CNBC on Friday.

Binance pledged to cover losses using its Secure Asset Fund for Users.

Both TRM Labs and Chainalysis have attributed the Binance hack to a North Korean state-backed hacking group called TraderTraitor, which has a history of crypto cyberattacks.

Frozen stablecoins

After the hack, several stablecoin issuers, including Circle, which…

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