Binance Recovers 90% of Funds Stolen in $6.3 Billion Hack
Crypto exchange pledges to cover all user losses after North Korean hackers breached security.
Binance has successfully recovered 90% of the $6.3 billion stolen from user wallets in a recent security breach, the cryptocurrency exchange announced. The company has committed to absorbing the financial impact, ensuring that users do not bear the loss of the stolen funds.
In a statement released on Saturday, Binance confirmed it had allocated over $6.34 billion from its corporate funds to compensate for the losses incurred during the hack. While 90% of the stolen assets have been recovered, the remaining 10% consists of less liquid tokens that may take longer to source.
Binance emphasized that popular cryptocurrencies such as Bitcoin, Ethereum, Binance Coin, Solana, XRP, World Liberty Financial USD, Ripple USD, and Zcash are fully backed at 100%. The exchange detailed that the replenishment of user funds was achieved through the utilization of its corporate treasury, a portion of its Futures insurance fund, and the emergency Secure Asset Fund for Users (SAFU).
To enhance transparency, Binance provided snapshots of its Proof of Reserve, along with links to the SAFU and its Futures insurance fund. The company reiterated its commitment to covering the full financial impact of the stolen funds through ongoing progress, transparent reporting, and concrete actions.
The breach, which reportedly took approximately 20 minutes to execute, is suspected to have been carried out by North Korea-linked hacking group TraderTraitor. Investigators believe the hackers may have exploited security vulnerabilities using Artificial Intelligence. Binance identified several points of breach following the incident, including the compromise of a software engineer's laptop.