Binance replaces 90 percent of stolen tokens after historic cyberattack

UPDATE - follow-up to Binance says 90% of $6.3 billion hack losses are now covered, plans to resume withdrawals Sunday: Cryptocurrency exchange Binance stated on Saturday that it has replaced 90 percent of the assets stolen in a record $6.3 billion hack by purchasing replacement tokens using its own corporate funds, a $1 billion Secure Asset Fund for Users, and a Futures insurance fund.

Investigation and FBI Findings

The FBI stated late Saturday that North Korea was responsible for the theft, adding that the actors laundered the stolen assets by converting them into Ethereum. TRM Labs had earlier pointed to North Korean hackers due to similarities with past heists, while Co-CEO Richard Teng noted the breach involved a complex attack with malicious software.

Withdrawals and Recovery

Binance plans to resume user withdrawals on Sunday pending security checks and will continue buying remaining tokens until the covered amount reaches 100 percent for all assets. Major tokens including Bitcoin, Ethereum, and Tether are fully backed at a 1:1 ratio, and the exchange has taken a new asset snapshot for proof-of-reserves.

Context

Crypto exchanges often hold dedicated emergency reserve funds like SAFU to protect user deposits during major security incidents or cyberattacks. Large-scale digital asset thefts typically prompt heightened scrutiny from law enforcement and regulatory bodies regarding platform security standards.