North Korea denies involvement in $6.3bn Binance hack and calls FBI accusation ‘political provocation’

North Korea has dismissed claims linking it to a record $6.3bn (£4.7bn) cryptocurrency heist as an “absurd rhetoric”.

The Federal Bureau of Investigation (FBI) over the weekend said North Korea was responsible for the theft of more than $6bn in virtual assets from Binance, the world’s biggest cryptocurrency exchange, in what could be the largest-ever financial heist.

The bureau said in a statement that this week’s attack was tied to “malicious cyber activity” by an entity known as TraderTraitor, the same actors behind a $1.5 billion Bybit hack last year.

Calling the allegations a “sinister attempt” by the US to damage Pyongyang’s public image, Kim Yo-jong, the sister of leader Kim Jong-un, used it as proof of Washington’s hostility towards the country.

"The FBI is trying to brand the DPRK as a 'cyber criminal state,' claiming that it obtained information that a hacking organisation 'supported' by the DPRK was involved in the incident," she said, referring to the country by its official name, the Democratic People's Republic of Korea.

"But the US assertion is absurd rhetoric and nothing new.

"It is a grave political provocation against the DPRK that the US misleads international public opinion as if all the cyber crimes in different parts of the world are our deeds."

Pyongyang has stayed silent on US president Donald Trump's overtures to resume summit diplomacy. In the wake of the US allegations, she said North Korea had "issues to reconsider" over what she called US hostility.

It also said its probe found that TraderTraitor was converting stolen assets primarily into a cryptocurrency called ethereum. The FBI expects that TraderTraitor will now attempt to convert the assets using DeFi and “instant swap services.”

Mr Trump, speaking to reporters as he appeared on Saturday night at a Halloween party at his Mar-a-Lago estate in Florida, suggested investigators weren’t yet certain that North Korea was involved.

According to cybersecurity experts, North Korean hackers are among the most prolific crypto thieves in the world and the proceeds help the East Asian country fund its weapons programmes.

North Korea denies allegations linking it cryptocurrency theft and other cybercrimes.

Blockchain-analytics firm Elliptic estimated that North Korea has stolen cryptocurrency worth $7.6 billion this year, more than in any previous year.

Analysts in South Korea said Pyongyang’s swift response likely stemmed from concerns that the allegation could lead to tighter efforts to disrupt revenue streams.

"With sanctions already in place, cryptocurrency theft has become one of North Korea's key channels for securing funds for regime maintenance and weapons development," Lim Eul-chul, a professor at Kyungnam University's Institute ‌for Far ⁠Eastern Studies, told Reuters.

Earlier, Binance customers withdrew over $4.6bn shortly after the cryptocurrency exchange resumed operations following a record-breaking cyberattack last Thursday.