Kim Yo Jong, the sister of North Korean leader Kim Jong Un, has rejected allegations that North Korea was responsible for a $6.3 billion hack involving Binance, the world's largest cryptocurrency exchange.

According to North Korean state media KCNA, Kim described the FBI's accusations as "absurd rhetoric" and a "grave political provocation," escalating the dispute over the alleged involvement of North Korean hackers in a major cryptocurrency theft.

The denial is notable because it comes from a senior member of North Korea's leadership, underscoring that the dispute over a major cryptocurrency theft now carries a diplomatic dimension alongside the technical investigation into where the stolen funds are headed.

Her denial directly challenges an earlier assessment by the Federal Bureau of Investigation (FBI), which attributed the October 29 attack to TraderTraitor, a hacking group linked to North Korea. The FBI identified the group as responsible for the incident and raised concerns about the movement of the stolen cryptocurrency through digital asset networks.

FBI Points to TraderTraitor

The FBI previously linked the October 29 attack to TraderTraitor, a group associated with North Korea. The alleged $6.3 billion theft has drawn attention to the security risks facing major cryptocurrency platforms and the challenges authorities encounter when attempting to trace and recover stolen digital assets.

According to the FBI's assessment — relayed by Coin Bureau — the stolen funds were being converted primarily into Ethereum (ETH). The movement of assets into ETH is a significant part of the investigation, because cryptocurrency can be transferred across blockchain networks and through services that complicate the identification of the funds' ultimate recipients.

The FBI also warned that the stolen assets could undergo further laundering through decentralized finance (DeFi) platforms and instant swap services. These services can facilitate cryptocurrency exchanges and transfers without necessarily relying on traditional centralized financial intermediaries.

U.S. Authorities Urge Industry to Block Transactions

In response to the alleged movement of the stolen funds, U.S. authorities have urged cryptocurrency exchanges and other service providers to block transactions connected to the compromised assets.

The request places exchanges and related infrastructure providers in an important position in efforts to prevent the suspected hackers from moving or converting the stolen funds. Identifying transactions associated with the theft could help limit opportunities to transfer assets through additional platforms and services.

For the industry, the request effectively elevates transaction screening from a routine compliance task to a central element of the response, since on-chain transfers themselves cannot be halted and interception typically depends on the platforms and services that touch the flagged assets.

Sharply Conflicting Positions

The FBI's attribution and Kim Yo Jong's subsequent denial represent opposing stances. While U.S. investigators have pointed to TraderTraitor, North Korea has rejected the accusation through a statement reported by KCNA.

The dispute centers on the alleged $6.3 billion Binance hack, the FBI's identification of TraderTraitor as the group behind the October 29 attack, and the reported conversion of the stolen assets primarily into ETH, with potential further laundering through DeFi platforms and instant swap services.

What happens next may hinge on whether exchanges and service providers act on the blocking request, whether the funds move through the DeFi platforms and instant swap services the FBI flagged, and whether either side issues further statements through official channels.

Source: Hokanews