FBI and Secret Service join investigation into Binance hack; Binance allocates $6.34B to cover losses and Circle freezes $823M.
Security & Exploits ·
Binance is cooperating with the FBI and U.S. Secret Service following a theft of $6.4 billion from the exchange, according to reporting by Reuters via Decrypt. Circle, issuer of the USDC stablecoin, has frozen approximately $823 million in tokens tied to the attack, while Tether separately immobilized $975.1 million in USDT. Both stablecoin firms retain the technical ability to blacklist specific addresses, effectively trapping stolen funds before perpetrators can be identified.
Blockchain intelligence companies TRM Labs and Chainalysis have attributed the breach to TraderTraitor, a hacking group connected to North Korean state cyber operations. The same group has been linked to a $1.5 billion theft from Bybit in February 2025, which the FBI also traced to North Korean hackers. Law enforcement agencies worldwide are coordinating on the investigation, with the Secret Service's involvement reflecting its mandate over computer crimes and digital currency offenses beyond its public-facing security role.
The recovery mechanism afforded by stablecoin issuers marks a departure from traditional stolen-asset scenarios. Circle's CEO confirmed the company is supporting the investigation and will maintain the freeze on associated tokens. Whether the frozen funds will ultimately be recovered, and how quickly the investigation can identify the actors behind the breach, remain unresolved.