Binance commits $6.34 billion after record crypto theft

After hackers stole about $6.3 billion from a Binance hot wallet, the exchange says it has set aside more than $6.34 billion in company funds to cover the loss. In its Oct. 31 security update, Binance said more than $5 billion was already available in the same tokens affected by the theft.

For Binance users, the immediate test is whether the exchange can restore withdrawals and show that balances remain backed while it replaces the stolen assets.

How will Binance cover the stolen assets?

Binance says it will cover the losses through its Secure Asset Fund for Users and company funds. The exchange says it is buying the remaining tokens through market and over-the-counter channels so it can replace the assets in their original denominations.

That process may take longer for tokens with low liquidity or where over-the-counter trades take time to settle, Binance said. The $6.34 billion figure does not include assets frozen during recovery efforts.

The theft affected Binance’s hot wallet, an internet-connected wallet used to process transactions. Binance said about $3 billion in affected assets had been frozen on-chain with help from law enforcement, blockchain firms, issuers and other industry partners.

When can users withdraw again?

Withdrawals were temporarily paused while Binance reviews and repairs the affected systems. Deposits and other services not affected by the incident continued to operate, according to the exchange.

Binance said its technical team was aiming to restore withdrawals within about 34 hours of its earlier update, subject to security checks. The exchange plans to resume withdrawals in phases, token by token, and says it will announce when services are safely restored.

In a Reuters report published by GMA News, Binance also said it planned a first Proof of Reserves snapshot within 12 hours, with results expected by Monday, Nov. 2. Proof of Reserves reports show the assets an exchange holds against customer balances; the planned snapshot is a way for users to check Binance’s reported holdings after the theft.

What does Binance say about the breach?

The exchange’s initial investigation pointed to a possibly compromised laptop, but later work uncovered additional points of compromise, Binance said. It reported no evidence so far that wallet private keys were compromised, and said the investigation was ongoing.

Binance expects to share technical findings within about 48 hours if they are verified and can be disclosed without affecting the investigation. It also said it is conducting a broader security review and will publish a technical report on what happened and the additional measures it plans to take.

Sources

• Oct. 31 security update — binance.com
• Reuters report published by GMA News — gmanetwork.com