How hard is it to recover the $6 billion stolen from Binance?
Security experts are calling it the "largest bank robbery in human history." Getting all of the stolen crypto funds won't be easy.
After hacking Binance, a massive cryptocurrency exchange, thieves stole over $6 billion from the platform. In response, Binance is attempting to recover the assets through a complex process involving cooperation with law enforcement and tracking the flow of stolen funds, according to a Binance spokesperson.
Former federal prosecutor and blockchain intelligence expert Ari Redbord described the heist as the largest bank robbery in history. TRM Labs and other security firms believe North Korean hackers, known as TraderTraitor, were behind the attack. The hackers breached Binance's hot wallets where users' funds are held, executing the theft in about 20 minutes, as reported by Binance.
Recovering the stolen assets is their top priority. Binance has already covered the full losses using company funds and vowed to pursue all available avenues to identify the responsible parties. The exchange has already frozen $3 billion in crypto assets from stablecoin issuers such as Circle, Tether, Ripple, and World Liberty Financial, according to the spokesperson. However, the majority of the stolen funds are in the form of Bitcoin and Ether, which cannot be frozen.
The next step involves working with law enforcement, who will seize the frozen funds using a seizure warrant. Once seized, Binance will need to initiate a civil forfeiture proceeding in court to recover the crypto assets. Analysts believe that the remaining funds could be laundered to evade detection.
Written by urgent.news from CBS News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- Binance sets aside over $6.34 billion to cover losses from attack channelnewsasia.com
