Binance Replaces 90% of Stolen Crypto After $6.3 Billion Hack
Written with artificial intelligence.
Binance has restored 90% of the cryptocurrency lost in a recent $6.3 billion hack, with plans to reopen withdrawals on November 1. The company is absorbing the losses through its own funds, ensuring customer balances remain intact.
Binance Addresses Stolen Funds
Binance has announced that it has successfully replenished 90% of the cryptocurrency stolen during a significant hack that occurred on October 31, totaling $6.3 billion. This marks an increase from the previous estimate of 80% as the exchange prepares to resume withdrawals on November 1.
The replenished assets include customer holdings of bitcoin, ether, USDT, BNB, SOL, USDC, XRP, USD1, RLUSD, and ZEC, which are now fully backed. The remaining 10% consists of less liquid tokens, which Binance is working to acquire through public markets and over-the-counter trades.
Financial Measures Taken
To cover these losses, Binance has allocated over $6.34 billion in corporate funds, including $5 billion in the impacted cryptocurrencies. This is in addition to approximately $3 billion in stolen assets that have been frozen by partners. Binance confirmed that it will absorb all financial impacts from the breach to protect its users' balances.
Furthermore, the replenishment is funded by the company's treasury, a portion of its futures insurance fund, and the Secure Asset Fund for Users (SAFU). Binance plans to restore SAFU to about $1 billion following the incident.
Ongoing Investigation
The security investigation into the breach is still ongoing. Binance's Co-CEO Richard Teng revealed that additional vulnerabilities were identified beyond the initially suspected compromised employee laptop. Meanwhile, U.S. President Donald Trump commented on the situation, indicating uncertainty about North Korea's involvement in the breach, which has been attributed to the TraderTraitor hacking group linked to the country.
Binance has released a new proof-of-reserves snapshot, showing that coverage ratios for the named tokens are at 100% or more, with a comprehensive cryptographic proof expected by November 3.
This article is for information only and is not investment advice.