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Binance Pledges to Cover Losses From Hack Estimated as Crypto's Largest
Binance pledges to cover losses from a hack estimated as crypto's largest, saying it has set aside more than $6.34bn in company funds.
Key points
- Binance said it has set aside more than $6.34bn in company funds to cover losses from the hack.
- The FBI said North Korea was responsible and that hackers converted stolen assets into Ethereum.
- Binance said it had frozen around $3bn of stolen assets after working with law enforcement and partners.
Why it matters. Binance says it will absorb the financial impact so users do not, though the company added that the remaining 10% of coverage may take longer to source.
Binance said on Saturday it would absorb the losses from a hack suspected to be crypto's biggest on record, having set aside more than $6.34bn in company funds. The FBI said North Korea was responsible, after observing hackers convert stolen assets into Ethereum. On Sunday, Binance said withdrawals had been restored on several of its networks after they were suspended.
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Binance Pledges to Cover Losses From Hack Estimated as Crypto's Largest
Binance has pledged to cover 100% of losses from what is suspected to be crypto's biggest hack on record. The exchange said it has set aside more than $6.34bn in company funds for this purpose. In a statement on Saturday, Binance said it would absorb the financial impact of the stolen funds rather than its users. In an update on Sunday, the company said it would source the remaining 10% of the required amount, which may take longer to obtain. The episode has drawn attention to how crypto firms are responding to losses, with some acting in ways more typical of banks.