North Korea Denies FBI Claims Linking Its Hackers to $6 Billion Binance Attack

North Korea has rejected accusations linking its government to the $6 billion Binance cryptocurrency hack, challenging findings from American investigators. The denial follows an FBI investigation that identified North Korean hackers as the perpetrators of the massive exchange breach.

According to Yonhap News Agency, senior North Korean official Kim Yo-jong dismissed the FBI’s findings in a statement on Monday. Kim, the sister of North Korean leader Kim Jong-Un, accused American authorities of attempting to damage the country’s international reputation.

Kim argued that the allegations formed part of an effort to portray North Korea as a state supporting cybercrime. The official specifically challenged the FBI’s claims that a government-backed hacking organization participated in the Binance attack.

Meanwhile, the FBI maintained its attribution of the incident to North Korean cybercriminals, following investigations by several blockchain security companies. The agency identified the suspected operation as TraderTraitor, a designation associated with North Korean malicious cyber activity.

The FBI had not publicly responded to Kim’s denial when the initial report emerged.

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FBI Investigation Reveals How Hackers Executed the $6 Billion Binance Breach

Blockchain investigators uncovered evidence suggesting that the attackers prepared their operation before targeting Binance’s cryptocurrency wallets.

According to TRM Labs, the attackers deployed malicious code across three wallets and conducted tests before executing Thursday’s breach. These preparations reportedly allowed the attackers to examine their methods before launching the larger operation.

Significantly, investigators discovered that the attackers exploited Ethereum’s EIP-7702 functionality to compromise a Binance hot wallet. The attackers transformed the wallet into a mechanism that automatically redirected assets under their control.

TRM Labs also identified approximately 50 pre-signed authorizations prepared before the attack. These authorizations increased the likelihood that at least one transaction would remain valid during execution.

Besides TRM Labs, two additional blockchain investigation firms linked the attack to North Korean threat actors. Their findings preceded the FBI’s public attribution of the cryptocurrency theft to North Korea. The agency subsequently identified the suspected attackers under its TraderTraitor designation, reinforcing its assessment of North Korean involvement.

Binance Replenishes 95% of Affected Assets Following Security Breach

Binance has also released its first post-attack proof of reserves report, outlining progress in replacing assets affected by the breach. The exchange reported replenishing approximately 95% of the compromised assets using company funds. This disclosure followed concerns surrounding customer holdings and the financial impact of the multibillion-dollar attack.

Additionally, the reserve update provided information about Binance’s recovery efforts following one of the largest reported cryptocurrency security incidents.

North Korea’s denial now stands against the FBI’s attribution and findings from three blockchain investigation firms. The conflicting statements leave responsibility for the attack publicly disputed, while Binance reports substantial progress in restoring affected assets.

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