CoinDesk
Binance says it has replenished 90% of the crypto stolen in a $6.3 billion breach and remains on track to resume withdrawals on Sunday, Nov. 1. The exchange says customer balances remain intact and that it is absorbing the losses through corporate funds, futures reserves and its Secure Asset Fund for Users (SAFU). The replenishment figure is up from about 80% in its previous update.
Why it matters
Binance says customer holdings of BTC, ETH, USDT, BNB, SOL, USDC, XRP, USD1, RLUSD and ZEC are fully backed. The remaining 10% consists of less liquid tokens that may take longer to acquire. Binance says it is buying those assets through public markets and over-the-counter trades, with help from industry partners.
The exchange says it set aside more than $6.34 billion in company funds, including $5 billion held in the affected cryptocurrencies. Those resources are separate from about $3 billion in stolen assets that partners froze. Binance is also using a portion of its futures insurance fund and expects to deploy part of SAFU. It says the remaining SAFU balance still meets its risk-management requirements and has committed to restoring the fund to about $1 billion.
Market impact
Binance published a proof-of-reserves snapshot dated Oct. 31, showing coverage ratios of 100% or more for the named tokens. The full cryptographic proof, intended to let users independently verify that their balances are included in reported liabilities, is expected by Nov. 3.
The investigation remains open. Co-CEO Richard Teng said investigators found additional breach points beyond an initially suspected compromised employee laptop. TRM Labs and Chainalysis attributed the attack to TraderTraitor, a North Korea-linked group. The recovery progress and withdrawal timeline offer users a path back to access, while the upcoming cryptographic proof and ongoing investigation remain important tests of confidence.
Frequently asked questions
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How much of the stolen crypto does Binance say it has replaced?
Binance says it has replenished 90% of the crypto stolen in the $6.3 billion breach, up from about 80% in its previous update.
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Which customer assets does Binance say are fully backed?
Binance says holdings of BTC, ETH, USDT, BNB, SOL, USDC, XRP, USD1, RLUSD and ZEC are fully backed.
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How is Binance funding the replacement of stolen assets?
Binance says it is using corporate funds, a portion of its futures insurance fund and a partial deployment of SAFU. It says more than $6.34 billion in company funds was set aside.
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When does Binance expect to publish its full cryptographic proof of reserves?
Binance says the full cryptographic proof is expected by Nov. 3. It is intended to let users independently verify that their balances are included in reported liabilities.
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Who has been linked to the Binance breach?
Blockchain analytics firms TRM Labs and Chainalysis have attributed the attack to TraderTraitor, a North Korea-linked hacking group. The investigation remains open.
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