Binance says 90% of $6.3 billion hack losses are covered
Binance says it has covered 90% of assets stolen in a $6.3 billion hack, using company reserves and insurance funds as it buys the remaining tokens.
The Blockheight Editors··2 min read
Binance said on Saturday, October 31, that it had covered 90% of the losses from a $6.3 billion hack, replacing stolen assets with tokens bought using company funds and reserves. The exchange said it would absorb the financial impact rather than pass it on to users.
How much has Binance replaced?
Binance’s October 31 recovery update said the exchange had moved from covering about 80% of the losses to 90%. Reuters reported that the covered amount was about $6 billion, leaving less than 10% to source.
Binance said customer holdings of bitcoin, ether, USDT, BNB, SOL, USDC, XRP, USD1, RLUSD and ZEC were fully backed. It said the remaining shortfall involved less liquid tokens, which may take longer to buy in the required quantities.
Where is the replacement money coming from?
Binance said it was using its corporate treasury, part of its futures insurance fund and a portion of its Secure Asset Fund for Users, or SAFU. Reuters reported the SAFU reserve was valued at $1 billion; Binance said it planned to replenish the fund to about that level.
The exchange said the futures fund balance remaining after the transfer met its risk management requirements. Binance also said industry partners had helped freeze about $3 billion in affected assets, separate from the funds used to replace customer balances.
What remains before all assets are covered?
Binance said it would continue buying the remaining tokens through market and over-the-counter channels, working with industry partners. It had published a proof-of-reserves snapshot dated October 31, but said generating the full cryptographic proof would take about 40 to 50 hours.
In its report on Binance’s recovery update, Reuters said the exchange expected withdrawals to resume Sunday, November 1. Binance said users would be able to independently verify the full proof by Tuesday, November 3; the final coverage of the less liquid tokens was still pending.
Source material
- October 31 recovery update — binance.com
- report on Binance’s recovery update — reuters.com