Binance covers 90% of stolen crypto funds after record hack

Binance has covered up to 90% of the roughly $6.3 billion in token assets stolen from its hot wallets in a record crypto theft announced Thursday. The exchange plans to buy the remaining token assets through market and over-the-counter channels until the covered amount reaches 100% for all tokens.

Coverage Details

Bitcoin, Ethereum, Tether, Binance Coin, Solana, USD Coin, Ripple, USD1, RLUSD, and Zcash are fully backed at 100%. Binance stated that it will absorb the financial impact of the stolen funds rather than its users. The remaining 10% consists of less liquid tokens outside the top 10 that may take longer to source. To replenish these assets, Binance is using its Secure Asset Fund for Users, a portion of its Futures insurance fund, and its corporate treasury.

Next Steps

The exchange aims to resume withdrawal services for users by Sunday, subject to security checks, while its investigation into the attack continues. Binance declined to discuss additional details on the investigation. It remains unclear how the attack took place or who was responsible. Binance initially suggested a compromised laptop allowed unauthorized withdrawal transactions, but Co-CEO Richard Teng later stated the attack involved a more complex process. TRM Labs, a blockchain intelligence and AI investigations company, pointed to North Korean hackers as potential culprits due to features matching earlier heists.

Context

Crypto exchanges use emergency insurance funds and corporate reserves to protect users when digital asset thefts occur. Security breaches of this scale draw heavy scrutiny from regulators and industry analysts tracking digital asset safety. Investigations into major blockchain hacks often rely on digital forensics firms to trace stolen funds across networks.