North Korea has strongly denied US allegations that it was behind a $6.3 billion cryptocurrency heist on the Binance platform. The US Federal Bureau of Investigation (FBI) claimed that North Korea was responsible for the theft of more than $6 billion in crypto assets, which sent shockwaves through the industry. Kim Yo Jong, the influential sister of North Korean leader Kim Jong Un, said the US allegations proved Washington remained hostile towards Pyongyang.
Kim Yo Jong described the US allegations as "absurd rhetoric and nothing new". She stated that the FBI was trying to brand North Korea as a "cyber criminal state" and that the US assertion was a grave political provocation against the country. North Korea has not responded to US President Donald Trump's overtures to resume summit diplomacy made earlier this year. The country's relations with the US remain strained, with Pyongyang accusing Washington of hostility.
The Binance cryptocurrency exchange, which was hit with what could be the largest-ever financial heist last week, has made more assets available for withdrawals by worried clients. The exchange saw net outflows of $4.72 billion as of Monday, but has since reported that hourly deposits have exceeded withdrawals. Binance launched a campaign to stem outflows and woo new users, offering fee rebates and rewards to eligible users.
North Korea faces growing scrutiny over cryptocurrency theft, which analysts say is a key source of funds for its weapons programmes. Cybersecurity experts say North Korean hackers are among the world's most prolific crypto thieves, and the proceeds help fund the country's efforts to develop nuclear weapons and ballistic missiles. North Korea has stolen cryptocurrency worth $7.6 billion this year, more than in any previous year, according to estimates by blockchain analytics firm Elliptic.
Analysts in Seoul said Pyongyang's unusually swift response likely reflected concern that the allegation could lead to tighter efforts to disrupt revenue streams that North Korea is accused of using to finance its weapons. Additional US measures targeting crypto wallets, laundering networks, and cryptocurrency exchanges could choke off an important source of revenue for the country. The Binance theft could be equivalent to about a sixth of North Korea's economic output.
Blockchain analytics firm Chainalysis estimated that 89% of crypto hack losses in 2026 were linked to North Korea, up from 15% in 2021. The average reported loss per hack rose from $50.65 million in 2021 to $185.65 million in 2026. North Korea is one of the world's most impoverished countries but has poured resources secured through illicit means into its missile and nuclear programmes.
Despite the hack, Binance has seen a relatively modest outflow of assets, with net outflows amounting to around 3% of the assets on its platform. The exchange has reopened withdrawals for more assets, and analysts say customer confidence has largely held up. The incident highlights the risks associated with cryptocurrency exchanges and the need for robust security measures to prevent such large-scale heists.
Key points
- North Korea denies involvement in $6.3 billion Binance crypto heist.
- US allegations against North Korea are based on FBI claims that the country was responsible for the theft of more than $6 billion in crypto assets.
- The incident highlights the risks associated with cryptocurrency exchanges and the need for robust security measures.
