North Korea denies role in $6.3 billion Binance hack, calls claim a ‘grave political provocation’

Last week, the world’s biggest cryptocurrency exchange announced that hackers drained approximately $6.36 billion of digital assets, causing a major breach. Experts accused North Korea of being linked to the cyberattack on Binance. However, the country denied the allegations, calling it a “grave political provocation.”

Kim Yo Jong, the sister of North Korean leader Kim Jong Un rejected FBI claims for attack to TraderTraitor, a hacking group linked to North Korea. Companies such as Elliptic and Chainalysis have also traced the attack and the movement of stolen cryptocurrency funds to actors they believe are linked to North Korea.

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According to KCNA, Kim said, “The FBI is trying to brand the DPRK as a ‘cyber criminal state’, claiming that it obtained information that a hacking organization ‘supported’ by the DPRK was involved in the incident.” She also accused the US of blaming North Korea for cyberattacks around the world.

How Binance hack took place?

After an investigation, it was found that hackers used approximately 12,000 different cryptocurrency wallets across 11 blockchain networks. They carried out more than 40,000 transactions to move the stolen money. The hack was said to be automated, and hackers used a new wallet every 25 seconds, making the funds move quickly.

Hackers initially moved much of the stolen cryptocurrency through the Tron blockchain, splitting the funds across approximately 7,700 different wallet addresses, and then to Ethereum using cross-chain bridges. At least $147 million worth of cryptocurrency had been transferred, according to Elliptic.

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The exchange said it has already made up for nearly 95% of the affected amount. However, sourcing the remaining 5% is taking longer because it involves cryptocurrencies that are not readily available in the market.

Since November 1, Binance has started allowing users to withdraw more types of cryptocurrencies, and be will be done across blockchain networks, not just the ones where services may have already resumed. The exchange is bringing services back gradually rather than reopening all withdrawals at once.