Binance covers 90 per cent of losses after $6.3 billion hack
The cryptocurrency exchange has pledged to cover all losses from the record-breaking cyberattack using its own corporate funds.
Cryptocurrency exchange Binance has replaced 90 per cent of the assets stolen during a $6.3 billion hack, according to reports by BBC News, Mint and Hindustan Times. The company stated it has set aside more than $6.34 billion in company funds to cover the losses and intends to replace the remaining 10 per cent, which may take longer to source due to lower liquidity.
Binance co-CEO Richard Teng said the company will absorb the financial impact rather than its users. The exchange replenished the stolen assets using its corporate treasury, part of its $1 billion Secure Asset Fund for Users (SAFU), and its Futures insurance fund. The company confirmed that holdings for Bitcoin, Ethereum, Tether, BNB, Solana, USD Coin, XRP, USD1, RLUSD and Zcash are now 100 per cent backed.
The FBI said on Saturday that North Korea was responsible for the attack, specifically naming the Lazarus Group, also known as TraderTraitor. US President Donald Trump said the US is still learning about the incident and is unsure of the culprits, though he noted that if North Korea is responsible, the US will talk to them.
Richard Teng described the breach as a complex attack involving a compromised laptop and sophisticated methods, such as a self-destruct mechanism, to hide tracks. The US Secret Service said it is working with private sector partners to identify, trace, and recover the stolen funds.
Binance has restored withdrawals on several networks following a temporary suspension. The exchange also announced a fresh Proof of Reserves snapshot dated October 31, with full verification expected by November 3.