Binance $6 billion crypto hack takes new turn as North Korea rejects FBI allegations

North Korea on Tuesday denied allegations that its hackers were responsible for the massive cryptocurrency theft at Binance, rejecting the US Federal Bureau of Investigation's (FBI) claims and accusing Washington of attempting to damage Pyongyang's international reputation.

According to news agency Associated Press, Kim Yo Jong, the influential sister of North Korean leader Kim Jong Un, dismissed the FBI's announcement as "a trite provocation" and "an absurd rhetoric." Her remarks came after US investigators linked the multibillion-dollar cyberattack to a North Korean hacking group.

What did North Korea say about the Binance crypto hack?

"This is not the first time that the US has attempted to spread misunderstanding of the DPRK in the international community, blindly linking the DPRK with the cyber crime' incidents whenever they occur on an international scale," she said in a statement.

DPRK refers to the Democratic People's Republic of Korea, North Korea's official name.

"On this occasion, we confirmed Washington's hostile attitude toward the DPRK once again and are closely monitoring a variety of persistent provocations of the US against our state," she added.

What did the FBI reveal about the $6 billion Binance heist?

The FBI subsequently attributed the attack to TraderTraitor, a hacking group linked to North Korea. US investigators said the same group was responsible for the USD 1.5 billion cyberattack on cryptocurrency exchange Bybit last year.

The allegations have renewed scrutiny of North Korea's suspected involvement in large-scale cryptocurrency thefts.

Has North Korea been linked to cryptocurrency thefts before?

Outside experts believe North Korea has increasingly relied on cryptocurrency theft and other illicit cyber activities to obtain foreign currency amid international sanctions and economic difficulties.

Such activities are believed to help support the country's economy and nuclear weapons programme.

In December 2022, South Korea's intelligence agency estimated that North Korean hackers had stolen approximately 1.5 trillion won (USD 1.1 billion) in cryptocurrency and other virtual assets over the preceding five years.

North Korea has also been linked to several major cyberattacks, including the 2013 disruption of South Korean financial institutions, the 2014 Sony Pictures hack and the WannaCry ransomware attack in 2017. Pyongyang has largely denied involvement in such incidents.

What did Donald Trump say about North Korea's alleged involvement?

US President Donald Trump suggested that investigators had not yet conclusively established North Korea's role in the Binance incident.

"I'm not concerned. We're learning about it," Trump told reporters during a Halloween party at his Mar-a-Lago estate in Florida.

"We don't know if it's North Korea," he added, while acknowledging that investigators could still reach that conclusion.

How has South Korea responded to the cyberattack allegations?

South Korea's Foreign Ministry said Monday that North Korea's illicit cyber activities posed a growing threat to the global digital economy.

Seoul said it was working closely with Washington and the broader international community to address the threat.

The dispute comes amid heightened tensions between Washington and Pyongyang, with North Korea intensifying weapons testing while Trump has expressed interest in reviving diplomacy with Kim Jong Un.

On Tuesday, North Korea announced that it had tested a new cluster warhead for strategic cruise missiles.

In a further warning to Washington, Kim Yo Jong said: "We have issues to reconsider in diverse aspects as regards the very unpleasant US hostile attitude."