Binance commits $6.34 billion to cover hacked assets
Key points
- Binance has reserved more than $6.34 billion in company funds to cover losses from its security breach.
- The exchange holds $5 billion in affected tokens and is purchasing the remaining assets through market and over-the-counter channels.
- Binance is rebuilding its withdrawal service and preparing a Proof of Reserves report for public verification by Monday.
Binance has committed more than $6.34 billion in company funds to cover losses from its hot wallet breach.
The exchange has already allocated $5 billion in affected tokens, including USDC, USDT, BTC, ETH and BNB.
"We are committed to covering all hacked losses through our company funds. Your assets are safe," Binance co-CEO Richard Teng said, according to a transcript he tweeted.
Binance is purchasing the remaining token assets through market and over-the-counter channels to complete its recovery commitment.
The attacker exploited Ethereum's (ETH) EIP-7702 delegation mechanism to obtain on-chain execution approval over a Binance hot wallet.
The breach exposed weaknesses in Binance's withdrawal approval controls, prompting a broader security review covering endpoints, cloud infrastructure, key management and transaction signing.
Binance holds most customer assets in cold wallets, while company funds support its recovery commitment and ongoing security investments.
Following the update, BNB was trading up 2.2 at $707.82.
Frequently asked questions
More from Crypto
FBI joins Binance investigation after $6.3B hack
Moody’s assigns A2 and P-1 ratings to Ripple USD
TRM Labs links North Korea to $6.36 billion Binance hack
CoinDCX restricts futures trading after liquidity disruption
Uniswap Labs launches TJAR for onchain fee conversion
Avail launches ShieldTX to protect Hyperliquid traders
