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 $6.34 billion in company funds to cover the loss and that all user holdings of Bitcoin (BTC), Ethereum (ETH), Tether (USDT), BNB (BNB), Solana (SOL), USD Coin (USDC), XRP (XRP), USD1 (USD1), Ripple USD (RLUSD) and Zcash (ZEC) are now fully backed.
The exchange used part of its Secure Asset Fund for Users (SAFU), a portion of its futures insurance fund and its own corporate treasury to buy back the stolen assets.
Says Binance,
“Binance will absorb the financial impact of these stolen funds, not our users.”
The remaining 10% is made up of less liquid tokens outside the top ten, which Binance says may take longer to buy in the amounts needed.
Binance says its hot wallets were compromised on October 29th at around 20:05 UTC.
The FBI and private analytics firms have identified North Korea’s state-backed Lazarus Group, also known as TraderTraitor, as the group behind the attack, reports The Business Standard.
North Korea has denied involvement.
Binance co-CEO Richard Teng says the theft involved multiple people who used a “self-destruct mechanism” to cover their tracks.
He says early findings pointed to a compromised engineer’s laptop, but later analysis turned up “additional points of breach.”
About $3 billion of the stolen assets has been frozen with help from law enforcement and industry partners.
Binance also took a new proof-of-reserves snapshot on October 31st and says it remains on track to reopen withdrawals on Sunday, November 1st.
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