US courts target $1.2B in stolen Binance funds, yet victims face a new hurdle

US authorities have secured court authorization to seize or restrain more than $1.2 billion stolen from Binance funds, advancing the legal effort to recover assets from the October theft.

The Department of Justice (DOJ) disclosed the authorization on Nov. 12 but did not announce completed forfeiture or a timetable for returning the money.

The court-covered assets sit within more than $2.7 billion frozen through combined US government and private-sector efforts, according to the department.

The larger figure measures the combined freezing effort, while the smaller one identifies the portion for which DOJ reports seizure or restraint authority.

Binance had already committed to covering its losses in its Nov. 3 incident report. The exchange promised to absorb the financial impact of the stolen funds and said it had set aside more than 100% of what it would need to cover the loss.

DOJ attributes the theft of more than $6 billion on or about Oct. 29 to North Korean military actors known as TraderTraitor. Its announcement said efforts to trace, freeze, seize and forfeit the stolen assets remained ongoing as the attackers continued laundering them through cryptocurrency bridges, mixers and exchanges.

Court authority leaves further recovery steps for Binance funds

The department's detailed account uses the wording “seize or restrain” and does not break down how much of the covered pool falls into each category.

The authorization establishes the scope of court-backed action over part of the frozen assets, without establishing that the entire amount is already seized.

The release describes forfeiture efforts as ongoing, and leaves the eventual recipients and distribution route unspecified.

DOJ's general guidance on compensation from forfeited assets helps explain the distinction between securing assets and paying victims.

Before remission can occur, the government must identify, seize, and forfeit assets.

The court authorization marks progress in recovering the stolen haul. The Nov. 12 announcement leaves unanswered how much is ultimately forfeited, who receives the assets, and when any return occurs.