U.S. Government and Private Sector Freeze Over $2.7 Billion of Binance Crypto Stolen in Oct. 29 Heist

The Department of Justice says efforts by U.S. authorities and private-sector entities have frozen more than $2.7 billion of the more than $6 billion in virtual assets stolen from Binance on or around Oct. 29. For PSPs, exchanges and banks that touch high-risk flows, the important part is not just the size of the theft: it is how quickly stolen crypto can move through bridges, mixers and exchanges, and how much of it can still be restrained after the fact.

1. The DOJ said in a Thursday, Nov. 12 press release that it obtained court authorization to seize or restrain more than $1.2 billion of the frozen amount. The agency also said the stolen assets are still being laundered by the perpetrators, whom the FBI refers to as “TraderTraitor,” through cryptocurrency bridges, mixers and exchanges.
2. Principal Deputy Assistant Attorney General for National Security M. Scott Proctor said North Korea’s government “bankrolls its rogue regime and illicit weapons program through cryptocurrency theft” and that the National Security Division will use “every tool at its disposal” to seize and return North Korea’s “ill-gotten gains.”
3. Binance said on Thursday that it completed coverage of assets impacted in the security incident and published a new Proof of Reserves snapshot showing an updated view of assets that are fully accounted for. The company said it committed more than $6.34 billion in company funds to cover the losses and sourced affected tokens through market and over-the-counter channels.
4. Binance said that funding came from a partial deployment of the Secure Asset Fund for Users (SAFU), part of its Futures insurance fund above the level required under its risk-management framework, and Binance’s own corporate treasury. The exchange also said it committed to replenishing SAFU to about $1 billion, continues to open withdrawals in phases, and is further enhancing its security infrastructure.
5. PYMNTS reported on Oct. 30 that the $6.3 billion theft was the biggest crypto theft ever. Binance halted withdrawals after the theft and said it expected to restart them within 48 hours. On Nov. 3, Binance said the hack resulted from a sophisticated, multi-stage campaign that began in June. Elliptic said on Monday, Nov. 9, that the hackers were using memecoins to launder some of the proceeds.

For high-risk payment players, this case is a reminder that crypto theft is not a one-jurisdiction problem and not a one-day event. The funds moved across multiple rails, the laundering ran through familiar crypto infrastructure, and the recovery effort depended on a mix of court orders, exchange action and private-sector tracing.