US Courts Authorize Seizure of $1.2 Billion in Stolen Binance Funds, but Victim Returns Remain Unresolved

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

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

According to the department, the assets covered by the court action sit within a larger pool of more than $2.7 billion frozen through combined US government and private-sector efforts. The larger figure reflects the total freezing effort, while the $1.2 billion identifies the portion for which the DOJ reports seizure or restraint authority.

Binance had already committed to covering its losses in a Nov. 3 incident report. The exchange pledged to absorb the financial impact of the stolen funds and said it had set aside more than 100% of the amount needed to cover the loss. The two efforts run on separate tracks — the pledge addresses the exchange's own books, while the DOJ action targets the stolen assets themselves — and the Nov. 12 disclosure does not describe how, or whether, they will intersect.

The DOJ attributes the theft — which it values at more than $6 billion and dates to on or about Oct. 29 — to North Korean military actors known as TraderTraitor. The department said efforts to trace, freeze, seize, and forfeit the stolen assets remain ongoing as the attackers continue laundering them through cryptocurrency bridges, mixers, and exchanges. For scale, the DOJ's valuation of the theft runs well above the $1.2 billion covered by the new court action, leaving most of the stolen funds outside the scope of this particular authorization.

Court Authority Leaves Further Recovery Steps Outstanding

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, but it does not establish that the entire amount has already been seized.

The announcement describes forfeiture efforts as ongoing and leaves both the eventual recipients and the distribution route unspecified. The 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 the assets in question.

The court authorization marks progress in recovering the stolen haul. Still, the Nov. 12 announcement leaves unanswered how much will ultimately be forfeited, who will receive the assets, and when any return will occur.