DOJ Moves to Seize $1.2 Billion in Crypto
Court authorization targets digital assets linked to an October 29 cyberattack attributed to North Korean hacking groups.
Updated on Nov. 13, 2026 in Cybersecurity
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The U.S. Department of Justice obtained court authorization to seize or restrain more than $1.2 billion in cryptocurrency linked to an October 29 cyberattack. Government agencies and private-sector partners have collectively frozen more than $2.7 billion in stolen assets.
Why it matters
The action shows federal authorities tracing stolen funds across blockchain networks and pursuing recovery at scale. For the United States, it underscores the growing role of cryptocurrency in state-linked cyber theft.
Investigators are tracing assets through cryptocurrency bridges, mixers, and exchanges across multiple blockchain networks. The Department of Justice has not established the composition of the full $1.2 billion amount.
The players
U.S. Department of Justice
The federal department responsible for prosecuting federal crimes and pursuing forfeiture of assets tied to criminal activity.
FBI
The Federal Bureau of Investigation, the lead U.S. federal law enforcement agency investigating cyber crimes and financial fraud.
TraderTraitor
A North Korean military-linked hacking group to which the October cyberattack has been attributed.
FaceStealer
A North Korean operation that allegedly used deceptive video meetings and AI-generated impersonations to carry out thefts.
The details
The FBI, the Department of Justice, cryptocurrency service providers, and other federal agencies are involved in the recovery effort. The cyberattack was attributed to TraderTraitor, a North Korean military-linked hacking group, and the Department of Justice separately took action against a North Korean operation known as FaceStealer, which allegedly used deceptive video meetings and AI-generated impersonations to steal more than $400 million over 18 months.
Timeline
October 29, 2026: Cyberattack linked to the seized or restrained digital assets occurred.
November 12, 2026: Department of Justice announced court authorization to seize or restrain $1.2 billion.
18 months: Duration of the FaceStealer theft operation that allegedly stole more than $400 million.
Legal Context
North Korean state-linked hacking groups have repeatedly targeted cryptocurrency platforms to fund state priorities. This seizure action marks an escalation in federal efforts to recover assets from such thefts at multibillion-dollar scale.
Cryptocurrency holders face heightened attention from federal investigators tracing funds across exchanges and networks. Recovered assets may take time to return, since forfeiture proceedings determine ownership before any transfer.
The takeaway
Stolen cryptocurrency can often be traced and frozen, but recovery depends on court processes that move slower than the theft itself. Readers should treat digital asset security as an ongoing priority.
What happens next
Recovered funds may become subject to forfeiture proceedings in which courts determine ownership and disposition of the assets.
Further reading
Explore more cybersecurity coverage on how governments are responding to state-linked digital theft.
Source note: This article includes information reported by Bitcoinist.
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