North Korea Denies Accusations of Attack on Binance – North Korea has rejected claims by the US Federal Bureau of Investigation (FBI) that hackers linked to Pyongyang were behind the theft of cryptocurrency from the Binance exchange. Kim Yo-jong, the sister of North Korean leader Kim Jong-un, called the accusations a political provocation. Meanwhile, Binance is resuming withdrawals and says it has replenished most of the stolen assets from its own funds.
According to North Korea’s state news agency KCNA, Kim Yo-jong described the American claims as “absurd rhetoric” and said Washington repeatedly links her country to cybercrime. In her view, the accusations demonstrate the hostile stance of the United States. She did not specify, however, what steps Pyongyang might take. The news was reported by Reuters.
At the end of October, the FBI announced that North Korea was behind the theft of more than six billion dollars in digital assets from Binance. It attributed the attack to a group called TraderTraitor, which it described as a North Korean cyber threat. According to the FBI, the attackers converted the stolen assets mainly into ether and could have moved them further through decentralized finance services and exchange platforms. The agency also called on companies in the cryptocurrency industry to block transactions linked to the addresses the hackers are using. The FBI also published a list of these addresses.
Pyongyang denies responsibility, but a denial alone is not evidence that refutes the investigators’ conclusions. Likewise, a public statement by the FBI is not a court ruling. In similar cyber attacks, the origin is usually determined on the basis of technical analysis, the movement of stolen funds, and other intelligence information. This is therefore an attribution of the attack to a specific group by US authorities, which North Korea disputes.
Also read: Purple Trading
Table of Contents – North Korea Denies Accusations of Attack on Binance:
What Happened at Binance
On October 30, Binance stated that attackers had breached its hot wallets, meaning digital wallets used for fast transaction processing, and stolen assets worth approximately 6.3 billion dollars. The exchange announced at the time that it would cover the losses from the SAFU fund, which is intended to protect users, and from company funds. According to its statement, the damage is not to be passed on to clients.
In an interview for Crypto-Globe, we also asked Miloš Mázor, CEO of Madison Six, which operates Crypto4me, about the impact of the attack. Mázor pointed out that the incident does not mean the Bitcoin network was breached. In his view, it may have been related to the abuse of an internal system.
The distinction is important. The Bitcoin blockchain is a network that records transactions, whereas an exchange is a company with its own systems, wallets, and security procedures. A problem on a platform therefore does not automatically mean that someone has broken Bitcoin itself or its blockchain. At the same time, it shows that users who leave their cryptocurrencies on an exchange depend on how the company manages their custody and withdrawals.
In the interview, Mázor also stressed the importance of segregating funds. Exchanges need to hold part of their assets in hot wallets so they can process withdrawals on an ongoing basis. According to him, the rest should be stored separately, with restricted access and multi-level approval. He advised people who hold cryptocurrencies long term to consider their own hardware wallet. However, it shifts responsibility for the security and backup of access credentials onto the user.
Also read: Monero – The Cryptocurrency That Protects Your Financial Privacy
Binance Is Restoring Withdrawals Gradually
On Monday, Binance stated that it had replenished approximately 95 percent of the affected assets. For the ten main cryptocurrencies, including bitcoin, ethereum, BNB, solana, and XRP, the exchange says client balances are backed one to one. It also published a new proof of reserves, which users can verify using a zero-knowledge cryptographic proof. The remaining five percent consists of less liquid tokens, which the company says take longer to replenish.
A proof of reserves provides an overview of an exchange’s assets and liabilities at a given moment. By itself, however, it is not a complete picture of all the risks associated with running the platform. It is therefore wise to distinguish between what Binance says about its reserves and an independent conclusion about the company’s overall financial health.
The exchange is also gradually restoring withdrawals. On Tuesday, it announced the next phase, which covers selected assets on the BNB Smart Chain, Ethereum, Solana, XRP, Sui, and several other networks. Availability may vary depending on the specific currency and network; Binance recommends checking the status directly on the withdrawal page. The restoration is proceeding gradually following security checks.
For the exchange’s clients, the most important question now is whether Binance will restore all withdrawals and whether it will continue to document the backing of their balances. The dispute between Washington and Pyongyang concerns who is behind the attack. The theft of the assets and its scale were announced by Binance itself, while the exact identity of the perpetrators remains a subject of investigation and political disputes.
Don’t miss: MadisonSix
Image source: Adobe Stock
