On October 29, cryptocurrency exchange Binance reportedly suffered a theft of approximately $6.3 billion, in what has been described as the largest cryptocurrency heist in history. The FBI attributed the attack to North Korean hackers.
An X post, citing an anonymous source from China’s financial sector, alleged that Beijing was the real force behind the theft. The claims have not been independently verified.
The source claimed that 70 to 80 percent of Chinese officials and individuals involved in gray-market businesses use Binance to move funds. The source further alleged that North Korean hackers receive training in China and cooperate with Chinese intelligence agencies, suggesting that the North Korean connection could serve as a cover for Beijing’s involvement.
Founded in Shanghai in 2017 by Chinese-born Canadian citizen Changpeng Zhao (CZ) and Chinese national Yi He, Binance rapidly expanded and became the world’s largest cryptocurrency exchange by January 2018. After China banned cryptocurrency trading, Binance moved its operations overseas, and its website was blocked in mainland China. Zhao has repeatedly denied that Binance is a Chinese company or is controlled by the Chinese government.
Despite its departure from China, Binance reportedly maintains a dedicated Law Enforcement Request System (LERS) through which Chinese police can submit requests for information and asset freezes. Chinese authorities have also frozen bank accounts belonging to people who receive yuan from cryptocurrency transactions, particularly when the funds are linked to suspected criminal activity. China classifies cryptocurrency-related business activities as illegal financial activities, and cross-border transactions can trigger investigations for suspected illegal business operations or money laundering.
The source claimed that the CCP had been targeting Binance for at least five years, saying it had already taken action against the exchange and had never stopped. The source predicted that the latest incident could lead to changes in Binance’s internal structure, with Beijing pressuring the company to open access to its backend systems. This would allow Chinese authorities to investigate users and monitor transactions much as they do through domestic payment platforms Alipay and WeChat Pay.
The source argued that the CCP wants to bring funds associated with illicit businesses, tax evasion, and wealthy Chinese families transferring assets overseas under tighter control.
Source: @JenniferZeng15 on X
https://x.com/JenniferZeng15/status/2116770938511351986