On Saturday, the cryptocurrency exchange Binance announced that it has successfully recovered 90 percent of the funds lost in the recent $6.3 billion hack of its platform by utilizing its own resources to acquire new tokens.
The remaining 10 percent comprises tokens that are less liquid, which could result in a longer timeframe for acquisition, the company stated in an announcement made on X.
Co-CEO Richard Teng shared on X that, “We have now replaced 90 percent of the stolen assets, and we are dedicated to addressing the remaining 10 percent. Our users will not experience any financial loss from this occurrence.”
Following the hack, cryptocurrency values declined on Friday, while Binance, the largest crypto exchange globally, aimed to reassure its clients about the security of their funds after the platform suffered a loss exceeding $6 billion due to a breach that analysts and the FBI attributed to North Korean hackers.
The FBI reported on Saturday that the cyber attack was executed by a state-sponsored group from North Korea known as TraderTraitor. According to the FBI, members of this group were seen converting the stolen funds into the cryptocurrency ethereum, and they anticipate “further laundering” of the assets through associated technologies.
A U.S.-based blockchain intelligence firm states that North Korean hackers are likely responsible for the theft of $6.3 billion US — approximately $9 billion Cdn — from Binance, the largest cryptocurrency exchange. The exchange indicated that deposits remained unaffected after the ‘complex attack,’ while withdrawals have been halted and are anticipated to resume within the next day or two. It confirmed that it would cover all losses.
Teng described the breach as a “complex attack” that involved a compromised laptop and malicious software designed to erase evidence of its activities, complicating the tracing and investigation processes.
In the aftermath of the hack, the exchange suspended withdrawals for its customers but announced on Saturday that it plans to reopen them on Sunday.
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Binance reported that it has allocated approximately $6.34 billion from its internal funds to cover the losses incurred.
The funds used to repurchase tokens were drawn from a portion of its $1 billion Secure Asset Fund for Users (SAFU), which is a bitcoin reserve established to safeguard customers during security breaches, alongside contributions from its Futures Insurance Fund and the company’s own corporate treasury, as stated on X.
Moreover, Binance indicated that it has taken a new snapshot of the assets held on its platform as of 00:00 GMT on October 31, as part of its proof-of-reserves initiative.
Users holding the ten listed tokens — BTC, ETH, USDT, BNB, SOL, USDC, XRP, USD1, RLUSD, and ZEC — will be able to confirm that their assets are backed at a minimum ratio of 1:1 once the complete proof is made available, the company noted.