DOJ Seizes $1.2B Linked to Binance in North Korean Crypto Scam

The DOJ seized $1.2 billion from cryptocurrency stolen in a Binance hack by North Korean hackers.

On October 29, 2026, North Korean military hackers, known as 'TraderTraitor' by the FBI, stole more than $6 billion in virtual currency from Binance, the world's largest cryptocurrency exchange. The Department of Justice secured court authorization to seize or restrain $1.2 billion of this stolen cryptocurrency, marking a significant disruption to North Korea's illicit cyber operations.

Combined efforts of the U.S. government and private entities have frozen a total of $2.7 billion of these stolen digital assets. "North Korea's government bankrolls its rogue regime and illicit weapons program through cryptocurrency theft," stated M. Scott Proctor, Principal Deputy Assistant Attorney General for National Security.

Separately, the DOJ and FBI dismantled a North Korean social engineering scheme dubbed 'FaceStealer.' This scheme exploited hijacked messaging apps and used deepfake videos to deceive victims into installing malware, resulting in over $400 million stolen within 18 months. The FBI also seized more than 900 webcam videos of victims during the investigation. Patrick Grandy, Assistant Director in Charge 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."

U.S. Attorney Jeanine Ferris Pirro emphasized the government's resolve: "The North Korean regime may think they are sophisticated cyber criminals, but we have consistently met them head on, as we did here seizing more than $1.2 billion of their stolen assets."

These developments underline the escalating threat cryptocurrency platforms face from state-sponsored cybercrime. For legal advisors and compliance teams, they reinforce the critical need for heightened risk assessment and cybersecurity vigilance in digital asset management.