DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.

U.S. authorities have seized around $1.2 billion in virtual assets stolen from cryptocurrency exchange Binance last month, according to the Department of Justice. The action is part of a coordinated response to cyber scams originating from North Korea.

More than $6 billion was stolen from Binance on Oct. 29. The Department of Justice attributed the theft to actors linked to the North Korean military.

Combined efforts by the U.S. government and the private sector have resulted in more than $2.7 billion of the stolen amount being frozen. Department units, law enforcement partners and virtual asset service providers have worked together to intercept the cryptocurrency.

The FBI blamed the attack on members of the North Korean military whom it calls “TraderTraitor.” The enormous theft shook confidence in crypto market security while triggering efforts to trace and stop the movement of the stolen assets.

The Department of Justice said it was taking coordinated action against the North Korean government’s “schemes to fund its regime through the massive theft of cryptocurrency.” That response includes efforts to seize or restrain cryptocurrency taken from Binance.

The department specifically cited “the court-authorized seizure and restraint of more than $1.2 billion worth of cryptocurrency recently stolen from Binance.” The court authorization gives authorities the power to target a substantial portion of the assets stolen in the October attack.

Tracking and freezing efforts remain underway because TraderTraitor actors continue attempting to launder the assets through various cryptocurrency channels. Authorities and participating service providers are therefore still working to locate funds that have not yet been frozen.

The Department of Justice also announced action against cloud based infrastructure used in a large identity impersonation scam called FaceStealer. The campaign has resulted in more than $400 million in cryptocurrency being stolen over 18 months, according to the department.

FaceStealer relies on fake video meetings created with stolen accounts and recordings of people known to its targets. Hackers use AI generated deepfakes to make the fraudulent meetings appear convincing.

During the scam, hackers claim that a technical problem requires a fix. They then install malware on the target’s computer and seize control of the victim’s communications.

After gaining access, the hackers steal cryptocurrency and pursue the victim’s contacts. Those additional attacks can occur months or more than a year after the original compromise, extending the danger well beyond the initial intrusion.

People working in the cryptocurrency and web3 industries are considered prime targets of the FaceStealer scheme. Its combination of impersonation, trusted relationships and familiar video conference services makes the operation particularly deceptive.

Assistant Director in Charge Patrick Grandy, 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.”

“It exploits our trust in ubiquitous video conference platforms and valued personal relationships. If you can’t imagine a scenario where you might fall prey to it, you are not thinking creatively enough,” Grandy added.

Principal Deputy Assistant Attorney General for National Security M. Scott Proctor tied the cryptocurrency thefts directly to the North Korean government. “North Korea’s government bankrolls its rogue regime and illicit weapons program through cryptocurrency theft,” Proctor said in a statement.

“America will fight back against that corrupt regime’s effort to profit through cybercrime. The National Security Division will use every tool at its disposal to seize and return North Korea’s ill-gotten gains.”

The seizure from the Binance theft and the disruption of infrastructure connected to FaceStealer represent separate parts of the federal response. Authorities continue tracing the remaining Binance assets as actors attempt to move them through cryptocurrency channels.

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.