exchange ·
FBI, Secret Service join Binance hack probe, Circle freezes $823 million in USDC
The FBI and the U.S. Secret Service are now involved in an inquiry concerning the Binance hack.
Binance has announced it has allocated $6.34 billion to cover losses resulting from the security breach. Investigators are currently tracing the funds that were stolen from the exchange.
Circle, the issuer of USDC, has frozen roughly $823 million in USDC connected to the incident. Tether also froze an additional $975.1 million in USDT.
Circle CEO Jeremy Allaire stated that the company was coordinating with law enforcement. Tether released a statement indicating, "Protecting the industry and our partners is our main priority."
Blockchain intelligence firms TRM Labs and Chainalysis have attributed the attack to TraderTraitor, a North Korean hacking group. This group was previously linked to the $1.5 billion Bybit hack.
The Secret Service's purview includes investigating computer crimes and digital currency-related offenses, in addition to its known protective duties.
Stablecoin issuers possess a unique capacity in crypto investigations because they can immobilize stolen assets by blacklisting specific blockchain addresses before perpetrators are identified.
This incident follows prior joint efforts, such as Operation Atlantic in April, where the Secret Service, the U.K.'s National Crime Agency, and other firms traced $45 million and froze $12 million from phishing scams.
This development aligns with a broader trend of North Korean actors targeting cryptocurrency platforms, as seen in previous attempts to infiltrate Binance through employee contact.
Why it matters
This incident highlights the increasing collaboration between federal regulators and exchanges in tracing illicit crypto funds. The involvement of stablecoin issuers like Circle demonstrates their growing role in enforcing compliance and freezing assets in major cyber incidents.
