Binance Says Customers Will Not Bear Financial Impact of $6.3bn Crypto Theft

Cryptocurrency exchange Binance has assured customers that it will fully absorb the financial impact of a security breach that resulted in the theft of approximately $6.3 billion in digital assets, saying it has already replenished 90 per cent of the affected funds.

In its latest security incident update published on Saturday, October 31, the exchange said it had increased the replenishment rate from approximately 80 per cent to 90 per cent, using funds from its corporate treasury, the Secure Asset Fund for Users (SAFU) and its Futures Insurance Fund.

Binance said it had set aside more than $6.34 billion to cover the losses and was continuing to purchase the remaining affected tokens through cryptocurrency markets and over-the-counter transactions. The outstanding 10 per cent consists mainly of less-liquid digital assets, which could take longer to acquire in the required quantities.

The exchange also confirmed that major cryptocurrencies, including Bitcoin, Ethereum, Tether, BNB, Solana, USDC, XRP, USD1, RLUSD and Zcash, were fully backed by reserves at a 1:1 ratio. It said customers holding the listed assets would be able to independently verify their backing once the updated proof-of-reserves process was completed.

Binance’s co-CEO, Richard Teng, reiterated the company’s position that customers would not bear the financial consequences of the incident. The company said it was working with industry partners to complete the remaining replenishment and would provide further updates.

The breach, which occurred around October 29, involved unauthorised withdrawals from Binance’s hot wallets. The company previously described it as a complex attack involving a compromised laptop and malicious software. The FBI has since attributed the operation to North Korea’s state-sponsored hacking group known as TraderTraitor, while Binance has been working with law enforcement and blockchain intelligence firms to trace the stolen assets.

The exchange and its partners have also reported efforts to freeze approximately $3 billion in affected cryptocurrency. However, replenishing customer assets is distinct from recovering the stolen funds: Binance’s latest 90 per cent figure refers to the replacement of affected assets, not the amount of cryptocurrency recovered from the attackers.

The incident has renewed concerns about the security of major cryptocurrency platforms and the growing financial impact of sophisticated cyberattacks. TheDailyNewsHub previously reported on Binance’s $6.3 billion security breach and the freezing of billions in affected cryptocurrency assets.