Blockchain Analytics Firm: N. Korean Hackers in New Phase of Laundering Binance Funds

North Korean hackers have initiated a multi-stage operation to launder $6.3 billion in stolen funds from Binance, the world's largest cryptocurrency exchange. According to Elliptic, a blockchain analytics firm, the hackers have moved assets to the Solana network and other blockchains, employing around 12,000 wallets in a coordinated effort to evade detection.

The funds have been distributed across multiple addresses and blockchain networks, including Ethereum, Solana, NEAR, and XRP. Some of the stolen Bitcoin was also converted into Ethereum and passed through mixing services, making it difficult to trace the transactions. Experts predict that the second stage of laundering will culminate in a third phase, where the stolen funds will be broken down into smaller amounts and converted into fiat currency.

In response to the Binance hack, the Financial Services Commission (FSC) convened an emergency review with domestic virtual asset service providers to strengthen security measures and coordinate a response. The FSC recommended that exchanges hold a larger proportion of customer assets in offline cold wallets and called for enhanced security protocols.

The virtual asset industry urged regulators to ease restrictions on withdrawal limits in the event of an external incident, as current law does not permit preemptive blocking of deposits and withdrawals. The U.S. FBI officially identified the hacking group as "TraderTraitor," a North Korean operation under the Reconnaissance General Bureau.

North Korean officials dismissed the FBI's allegations as "absurd and groundless fabrications" and accused the U.S. of attempting to spread negative perceptions of North Korea.