Binance Covers 90 Percent of USD6.3B Hack Losses, Users Made Whole
(MENAFN) Binance, the cryptocurrency exchange, said it has now reimbursed 90% of the losses from a cyberattack and is still buying tokens on the open market and through over-the-counter (OTC) channels to close the remaining gap.
The company said in a statement that it has committed more than $6.34 billion of its own funds to compensate affected users.
Noting that roughly 80% of the affected amount had been covered earlier, the statement said: “The coverage rate has now reached 90%.”
Losses involving Bitcoin (BTC), Ethereum (ETH), Tether (USDT), BNB, Solana (SOL), USD Coin (USDC), XRP, USD1, RLUSD and Zcash (ZEC) have been fully covered, the company said. The remaining 10% is made up of lower-liquidity tokens outside those 10 assets.
Binance said it will keep buying the affected tokens through market and OTC channels until every token reaches 100% coverage.
“Binance, not our users, will bear the financial burden of the stolen funds,” the statement said.
The exchange said its next priority is restoring user withdrawals, and that it remains on track to reopen them on Nov. 1, as previously announced.
The statement also disclosed a new proof-of-reserves snapshot. Once a zero-knowledge proof is generated, users can independently verify that their assets are backed at a minimum 1:1 ratio.
On Thursday, Binance said it was investigating reports of a potential security issue and assured users their funds were safe. In a Saturday statement, the company put the estimated scale of the breach at $6.3 billion and said about $3 billion in assets had been frozen.
The company said in a statement that it has committed more than $6.34 billion of its own funds to compensate affected users.
Noting that roughly 80% of the affected amount had been covered earlier, the statement said: “The coverage rate has now reached 90%.”
Losses involving Bitcoin (BTC), Ethereum (ETH), Tether (USDT), BNB, Solana (SOL), USD Coin (USDC), XRP, USD1, RLUSD and Zcash (ZEC) have been fully covered, the company said. The remaining 10% is made up of lower-liquidity tokens outside those 10 assets.
Binance said it will keep buying the affected tokens through market and OTC channels until every token reaches 100% coverage.
“Binance, not our users, will bear the financial burden of the stolen funds,” the statement said.
The exchange said its next priority is restoring user withdrawals, and that it remains on track to reopen them on Nov. 1, as previously announced.
The statement also disclosed a new proof-of-reserves snapshot. Once a zero-knowledge proof is generated, users can independently verify that their assets are backed at a minimum 1:1 ratio.
On Thursday, Binance said it was investigating reports of a potential security issue and assured users their funds were safe. In a Saturday statement, the company put the estimated scale of the breach at $6.3 billion and said about $3 billion in assets had been frozen.
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