Binance Covers 90% of $6.3 Billion Hack Losses, Resumes Withdrawals
Written with artificial intelligence.
Binance has announced that it has covered 90% of the approximately $6.3 billion stolen in a recent hack and plans to resume withdrawals starting Sunday, pending security checks. The FBI has attributed the breach to North Korean actors.
Binance Addresses Hack Losses
Binance reported on Saturday that it has compensated for up to 90% of the assets lost during a record $6.3 billion hack. The incident, identified earlier this week, involved the theft of token assets from the exchange's hot wallets.
The FBI has determined that North Korea was behind the cyber theft. Binance is actively purchasing the remaining token assets required to reach full coverage for affected users. As of now, all major tokens including Bitcoin (BTC), Ethereum (ETH), and Tether (USDT) are confirmed to be fully backed.
While Binance has successfully restored most of the affected assets, the remaining 10% consists of less liquid tokens, which may take longer to obtain. The exchange is utilizing its Secure Asset Fund for Users (SAFU), futures insurance fund, and corporate treasury to mitigate the financial impact on users, asserting that it will absorb the losses.
Withdrawals are expected to resume on Sunday, subject to necessary security checks, as the exchange continues its investigation into the incident. Binance has not provided additional details on the investigation but has indicated it will keep users informed through transparent reporting.
The exact method of the hack remains unclear, although initial reports suggested it may have involved a compromised laptop belonging to a DevOps engineer. Further analysis indicated a more complex process was at play, as stated by Binance's Co-CEO Richard Teng.
Ongoing Investigation and Security Measures
The FBI has noted that the stolen assets are being laundered, with malicious actors converting them into Ethereum to facilitate further illegal activities. Blockchain intelligence firm TRM Labs corroborated the involvement of North Korean hackers, citing similarities with past attacks linked to the country.
This article is for information only and is not investment advice.