Binance Allocates Over $6.34 Billion to Cover Losses from Historic $6.3 Billion Hack
Binance announced on Friday that it has allocated more than $6.34 billion from its own capital to compensate for losses incurred during a recent hack, with $5 billion already held in the very tokens that were stolen.
A Binance representative told Cointelegraph that the $5 billion is maintained in the specific token assets required, all safely kept in Binance's custody.
The company has not revealed when these assets were obtained.
For security reasons, the representative declined to disclose the wallet addresses holding these funds, but confirmed that the assets will be included in Binance’s upcoming proof-of-reserves report, which details holdings backing customers’ account balances.
Binance stated that it submits weekly reports regarding its corporate funds to the Financial Services Regulatory Authority (FSRA), the financial overseer for Abu Dhabi Global Market in the UAE, a requirement that has been in place prior to the hack incident.
The exchange has yet to specify which additional tokens it still needs to acquire, the timeline for these purchases, or the amount of stolen cryptocurrencies that have been recovered so far.
On Friday, Binance confirmed it suffered a $6.3 billion cyberattack—the largest cryptocurrency theft recorded to date. Analysis from blockchain intelligence firm TRM Labs revealed that funds were siphoned from Binance wallets spanning ten blockchains on Thursday, attributing the hacking campaign to the North Korean group TraderTraitor.
Binance reported that approximately $3 billion of the compromised assets have been frozen through collaboration with blockchain partners. These frozen assets are not counted among the company’s funds allocated to cover the hack-related losses.
why
Why it matters
This disclosure highlights Binance's commitment to transparency and protective measures following the largest crypto theft ever, emphasizing the company's efforts to reassure customers and regulators by backing losses with tangible assets.
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