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Binance Sets Aside $6.34 Billion to Absorb Losses From $6.3 Billion Hack
Binance says it will cover the $6.3 billion hack losses itself, reserving more than $6.34 billion from its own funds.
Key points
- Binance has replaced around 80 per cent of the stolen tokens and bought back $5 billion worth, including USDC, USDT, Bitcoin, Ether and BNB.
- The exchange says it froze about $3 billion of stolen funds across blockchain networks with law enforcement and industry partners.
- TRM Labs and Chainalysis have linked the $6.3 billion theft to the North Korean hacking group TraderTraitor, Reuters reported.
Why it matters. Users are promised no losses, but withdrawals return only in phases and remain subject to security checks, so access to funds depends on that timeline.
Binance is covering users' losses from a hot-wallet breach on October 29 that led to about $6.3 billion in unauthorised withdrawals. The exchange said it has reserved more than $6.34 billion from its own funds and has replaced around 80 per cent of the stolen tokens. It has also frozen about $3 billion of stolen funds and aims to restore withdrawals in phases within about 34 hours, subject to security checks.
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Binance Sets Aside $6.34 Billion to Absorb Losses From $6.3 Billion Hack
Binance has set aside $6.34 billion to cover losses from the hack, according to the report. The exchange said it will absorb the impact and not its users. Binance said it has restored backing for 90% of the assets affected by the $6.3 billion hack. It is planning to resume withdrawals, subject to security checks. The hack is the subject of a separate US investigation into possible North Korean involvement.