The Justice Department says it has court authorization to seize or restrain more than $1.2 billion in cryptocurrency stolen from Binance, a major legal step in the effort to recover assets from the October hack. The order does not mean the money has already been returned to affected customers.

What the $1.2 billion court authorization means

The Justice Department said the court-authorized amount is part of more than $2.7 billion in Binance-linked assets frozen through combined U.S. government and private-sector efforts. Authorities have described the October theft as roughly $6.3 billion. The FBI and DOJ attribute it to TraderTraitor, a hacking group they say is linked to North Korea.

Freezing or restraining cryptocurrency can keep it from being moved while investigators trace its path and the legal process continues. The Associated Press reported that the government typically must pursue forfeiture through a judge, who then considers who has a legitimate claim to recovered funds. That means court authority to seize assets is different from a completed forfeiture or a customer payout.

Binance users are not automatically receiving the seized funds

The Justice Department says tracing, freezing and forfeiture efforts are ongoing as investigators follow assets through crypto bridges, mixers and exchanges. The Block reported that Binance said it had covered the assets affected in the hack. The federal seizure process is a separate effort to recover stolen cryptocurrency; the announcement does not set out a payment timetable or say how any forfeited funds would be distributed.

For readers following the business side of the story, the key distinction is between assets immobilized by authorities and assets legally forfeited and disbursed. Those are separate steps, and the latest announcement confirms court authority for part of the recovery effort rather than a final outcome for customers.

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Sources: U.S. Department of Justice; Associated Press; The Block.