US wins court approval to seize $1.2bn in Binance crypto

US authorities have court approval to seize or restrain more than $1.2 billion in cryptocurrency stolen from Binance. The Justice Department announcement on Nov. 12 says that amount is part of more than $2.7 billion in stolen assets frozen through joint government and private-sector efforts. The orders put a large share of the frozen funds within reach of a formal recovery process.

The Binance theft exceeded $6 billion

The Justice Department says North Korean military members stole more than $6 billion in virtual assets from Binance on or about Oct. 29. The FBI calls the North Korean actors TraderTraitor. The Associated Press reported the seizure announcement as involving about $6.3 billion stolen, describing it as the largest crypto heist in history.

The gap between the theft and the amount now subject to court orders is substantial. More than $2.7 billion has been frozen so far, while the Justice Department has court authorization to seize or restrain over $1.2 billion of that sum. A freeze blocks movement of assets; seizure or restraint under court authority gives the government a legal route to hold them while recovery proceeds.

Tracing and recovery are still underway

The Justice Department says investigators and law enforcement partners worked with virtual asset service providers, or companies that handle crypto transactions, to stop funds from moving beyond their reach. It says the North Korean actors continue to launder the stolen assets through crypto bridges, mixers and exchanges. Bridges move assets between blockchains; mixers obscure where crypto came from.

The government’s action does not mean the funds have already been returned to Binance or its customers. The Justice Department says efforts to trace, freeze, seize and forfeit the assets are ongoing. In forfeiture, the government asks a court to take ownership of property; the AP report says a judge typically decides who has a valid claim to recovered funds.

For crypto holders, the figures show both the scale of the theft and the limits of the recovery so far. The $1.2 billion covered by court authorization is less than half of the $2.7 billion frozen, and well below the more than $6 billion stolen. The government has not said when the court process will finish or how much of the frozen crypto will ultimately be returned.

References

• Justice Department announcement — justice.gov
• reported the seizure announcement — apnews.com