Days after the largest cryptocurrency theft in history, many are pointing fingers at a country known for targeting crypto exchanges to dodge sanctions and fund its weapons programs:
The Democratic People’s Republic of Korea.
“TRM attributes the attack to TraderTraitor, North Korea’s elite hacking unit, based on robust on- and off-chain intelligence, blockchain We make this judgment with high confidence,” the blockchain intelligence firm TRM Labs said in a blog post.
The US$6 billion-plus theft saw Binance suspend all transactions while it investigated the incident.
However, while the investigation continues, Kim Yo Jong – the sister of DPRK leader Kim Jong Un and considered to be one of the most powerful individuals in the country – has poured water on the allegations that North Korean hackers were behind the hack.
“Recently, the United States has once again made a cliched provocation by linking us to the massive theft of billions of US dollars worth of cryptocurrency from Binance, the world's largest cryptocurrency exchange,” Kim said in a statement.
“The FBI is attempting to brand us as a ‘cybercriminal state,’ claiming that it has obtained information that a hacking organisation receiving so-called ‘support’ from the Democratic People's Republic of Korea was involved in this incident.
“However, the US claim is preposterous nonsense and nothing new.”
Kim went on to claim this is not the first attempt by the US to “spread a false perception of North Korea to the international community” by linking it to malicious cyber activity.
“The United States misleading international public opinion by implying that all cyber fraud activities occurring around the world are our doing is clearly a serious political provocation against us,” she said.
“This is another serious act infringing upon the sovereignty of the Republic of Korea that has branched out into a new territory, as an impure attempt to damage the international image of the Democratic People's Republic of Korea and disparage our dignity and national prestige.”
Kim said North Korea “resolutely” opposes malicious acts in cyberspace, which it believes is “the common property of humanity”. She then suggested another possible culprit – the Trump administration.
“The international community needs to recall once again the fact that last year, immediately after the current US administration took office, it announced that it would confiscate illegally stolen cryptocurrency assets and establish them in the national strategic reserve,” Kim said.
“If we examine who would receive the large sum of cryptocurrency funds if they were recovered, it could provide clues about the mastermind behind this hacking incident.”
Regardless of who is behind the incident, Binance is continuing to insist that it is backing its customers.
“Our commitment remains the same: Binance will fully cover the financial impact of the funds stolen in this incident,” the company said in its latest update.
“We will continue to demonstrate this commitment through measurable progress, transparent reporting, and concrete actions.”
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