
Why North Korea's 'elite' hackers are the prime suspect in major Binance hack
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Two major blockchain analytics firms say they have robust intelligence pointing to a North Korean state-backed group as the likely culprits in the $6.3bn (£4.7bn) hack of Binance, the world's largest cryptocurrency exchange.
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The Lazarus Group, a North Korean hacking unit also known as TraderTraitor, was identified "with high confidence" by TRM Labs, as well as Chainalysis.
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This incident is just the latest linked to the country, one of the poorest in the world and where access to the internet is severely restricted.
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Experts accuse the government of North Korean leader Kim Jong Un of relying on cybercrime to finance itself, something Pyongyang has long denied.
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Though not financial, the nation's most spectacular suspected hack took place in 2014. The target: Sony Pictures, which had made the Hollywood film The Interview. The film involves a plot to assassinate Kim.
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The resulting hack exposed thousands of embarrassing emails exchanged among the studio's top executives.
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Who could be behind the Binance hack and what we know so far Crypto giant Binance attempting to recover $6.3bn stolen in hack linked to North Korea Last year, the Federal Bureau of Investigation (FBI) said North Korea was responsible for the theft of $1.5bn on the Bybit exchange.
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In the aftermath of that incident, the agency said TraderTraitor had moved to quickly launder and disperse the stolen assets, converting them to Bitcoin and other digital assets with a goal of eventually turning them into hard currency.
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The FBI has broadly accused North Korea of "illicit cybercrime and virtual asset theft activities".
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The nation has systematically developed its cyber operations, recruiting the most promising students from universities and channeling them into hacker groups overseen by North Korea's intelligence agency, according to reports.
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Some of the cyberwarfare conducted takes place just over the nation's border in China, according to analysis from tech groups.
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Watch: What we know about Binance's $6.3bn hack and what to do if you're affected Much of its hacking activity has centred on monetary gain.
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North Korean hackers are also suspected in the theft of $620m worth of cryptocurrency in 2022.
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In this most recent heist, North Korean agents are accused of using a special authorisation to turn a Binance hot wallet, which is connected to the internet, into one that moved funds automatically to the attacker.
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TRM said it's likely the attacker gained access to Binance's hot wallet signing system as part of the scheme.
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Binance has not directly responded to the BBC's queries about the incident's potential links to the area.
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The company had initially said it thought an engineer's laptop had been compromised, allowing unauthorised withdrawals, but later said the attack was wider.
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"Our subsequent investigation has uncovered additional points of breach," Binance's co-CEO Richard Teng said.
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Some 80% of stolen assets have been secured, a Binance spokesperson said on Friday, but the rest remains unaccounted for.
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If the accusations are true, the record-making heist shows how powerful suspected North Korean hackers have become – a sign that the tools of the hacking trade have grown sharper.
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Experts say the rise of artificial intelligence has also given threat actors new ways to carry out crime, through automation and other means.
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In this case, it's plausible that AI was used to infiltrate Binance's systems.
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As Chainalysis put it, the attacker used laundering patterns "we have not seen before".
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