Binance says it has replenished 90% of funds lost in $6.3bn hack

Binance said on Saturday, October 31, that it had replenished 90% of the assets affected by a $6.3 billion hack, two days after the exchange’s hot wallets were compromised. The company said users would not bear the loss, but withdrawals remained suspended as security checks continued.

• Estimated loss: $6.3 billion in token assets.
• Assets replenished: 90%, Binance said.
• Assets frozen with partners: about $3 billion.
• Withdrawal services: Binance targeted Sunday, November 1, for a phased reopening.

In its latest recovery update, Binance said the replenishment came from its corporate treasury, a portion of its Secure Asset Fund for Users (SAFU) and part of its futures insurance fund. The company said it was still buying the remaining affected tokens.

How much of the stolen crypto has Binance replaced?

Binance said ten tokens, including bitcoin, ether, BNB and USDC, were now fully backed. The remaining 10% of the loss involved tokens outside that group, which the company described as less liquid and harder to source in the required amounts.

The exchange said it had set aside more than $6.34 billion in company funds in its previous update. It now says it will absorb the financial impact and continue acquiring tokens until all affected assets are covered.

What does the exchange say happened?

Binance said its hot wallets were compromised at about 20:05 UTC on October 29, leading to unauthorized withdrawals worth approximately $6.3 billion. Hot wallets are crypto wallets connected to the internet, which makes funds accessible for transactions but exposes them to online attacks.

The company’s initial investigation pointed to a potentially compromised engineer’s laptop. A later update said investigators had found additional points of breach, and that the investigation into the full sequence was continuing. Binance said it had found no evidence that wallet private keys were leaked.

The Associated Press report said blockchain firms suspected North Korea’s TraderTraitor hacking unit. Binance said it was working with law enforcement and partners to identify those responsible; the attribution has not been confirmed by the exchange.

Can customers withdraw or verify their balances?

Not yet, according to Binance. The exchange said deposits and other unaffected services remained operational, while it temporarily suspended withdrawals for security reviews and system repairs. It said it was on track to begin restoring withdrawals on Sunday, November 1, in phases.

Binance also said it had taken a new Proof of Reserves snapshot at midnight UTC on October 31. The snapshot is an account of assets held by the exchange; the company said a fuller cryptographic proof, which users can use to check that their balances are backed, was expected by November 3.

Binance said it would replenish its SAFU reserve to about $1 billion after using part of it for the recovery. The company’s figures describe its own response, while the investigation and asset recovery are still under way.

Sources and documents

• latest recovery update — binance.com
• Associated Press report — apnews.com