Binance Recovers Majority of Stolen Funds After Record Hack
On Saturday, cryptocurrency exchange Binance announced significant progress in recovering assets stolen during a massive $6.3 billion hack of its platform. The company reported that it has managed to replace 90% of the stolen amount by allocating internal funds to purchase new tokens.
Remaining Assets Considered Less Liquid
The remaining 10% of the stolen funds consist of tokens that are categorized as less liquid, which may prolong the buying process, the exchange explained in a statement shared on X.
“We have successfully restored 90% of the assets lost in the breach, and we remain committed to covering the remaining 10%. Our users will not incur any financial loss due to this incident,” stated Richard Teng, co-CEO of Binance, on X.
Market Reaction and Security Concerns
Following the hack, cryptocurrency prices experienced a downturn. Binance, recognized as the largest crypto exchange globally, sought to reassure its customers regarding the safety of their funds after the devastating breach, which had an estimated value exceeding $6 billion. Analysts and the FBI have pointed the finger at North Korea as the likely orchestrator of this cyberattack.
FBI Identifies State-Sponsored Group
On Saturday, the FBI attributed the cyber assault to a North Korean unit known as TraderTraitor. The agency observed members of this group converting the stolen assets into Ethereum, adding that it anticipates further laundering efforts utilizing advanced technology.
WATCH | Hackers steal billions from Binance:
Hackers steal nearly $6.3B US in crypto
A U.S.-based blockchain intelligence firm indicates that North Korean hackers were likely behind the theft of $6.3 billion US — nearly $9 billion CAD — on Binance. The exchange announced that deposits remained unaffected while withdrawals were temporarily suspended, with plans to resume them within one to two days.
Nature of the Attack
Teng elaborated on the nature of the breach, describing it as a “complex attack” that involved a compromised laptop and sophisticated malware designed to erase any traces of its presence, complicating investigations.
Withdrawal Policy and Financial Provisions
In the immediate aftermath, Binance halted all customer withdrawals. However, the exchange indicated on Saturday that it is on track to resume withdrawals by Sunday.
Binance has allocated approximately $6.34 billion from internal company funds to cover the losses incurred due to the hack. This investment is drawn from the company’s Secure Asset Fund for Users (SAFU), a reserve meant to protect customers during security breaches, as well as from its Futures Insurance Fund and corporate treasury.
Implementation of Proof-of-Reserves
Additionally, Binance has conducted a new snapshot of assets held on its platform as of 00:00 GMT on Oct. 31, as part of its proof-of-reserves process.
Users holding a total of ten specific tokens, including BTC, ETH, USDT, BNB, SOL, USDC, XRP, USD1, RLUSD, and ZEC, will be able to verify that their assets are backed at a minimum ratio of 1:1 once the complete proof is made available.
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