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Binance Says It Has Replaced 90% of $6,300,000,000 Stolen in Record Crypto Hack
Crypto exchange Binance says it has now covered 90% of the roughly $6.3 billion stolen from its hot wallets in what is believed to be the largest cryptocurrency hack ever. In its latest recovery update, Binance says it set aside more than $6.
Dextape brief
Binance reports it has made up nine-tenths of the approximately $6.3 billion drained from its exchange wallets, an incident many consider the largest crypto theft. The company says it set aside over $6.34 billion of internal funds, so all holdings in ten named assets are fully backed. Funding came partly from a user protection fund, a futures insurance reserve and corporate treasury. The remaining 10% involves less liquid tokens that may take longer to acquire. The breach happened October 29th, and the FBI and outside analytics firms tie it to Lazarus Group, a state-backed North Korean group, though North Korea denies involvement. Co-CEO Richard Teng says several people were involved and about $3 billion has been frozen with help from partners. Withdrawals are still expected to reopen Sunday, November 1st.
Why it matters: It shows how an exchange covers a theft of this scale, with the firm absorbing losses from its own reserves and treasury instead of user holdings.
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