Cryptocurrency exchange Binance says it has replenished 90 per cent of assets stolen in a security breach estimated at $6.3 billion, with the remaining 10 per cent still being sourced.
The company disclosed this in a statement on Saturday, saying the outstanding assets consist mainly of less liquid tokens, which could take longer to obtain in the required quantities.
Binance said it had set aside approximately $6.34 billion in company funds to cover the losses and restore affected assets.
The replenishment exercise included a partial deployment of its $1 billion Secure Asset Fund for Users (SAFU), a reserve established by the exchange to protect customers against losses arising from security incidents.
The development follows a major attack on the cryptocurrency platform, which Binance’s co-chief executive officer, Richard Teng, described as a complex operation involving a compromised laptop and malicious software designed to erase evidence of the attackers’ activities.
Teng said the tactics used in the breach made it more difficult to trace the attack and investigate how it was carried out.
As part of efforts to reassure users about the safety of funds held on its platform, Binance also announced that it had taken a fresh snapshot of customer assets as of 00:00 GMT on October 31.
See also: FBI, Secret Service Join Probe as Hackers Steal $6.3bn from Binance
The snapshot forms part of the exchange’s proof-of-reserves process, which allows users to verify that their holdings are backed by assets maintained by the platform.
Binance said customers holding 10 listed cryptocurrencies and stablecoins, including Bitcoin, Ethereum, Tether, BNB, Solana, USD Coin, XRP, USD1, RLUSD and Zcash, would be able to verify that their assets were backed at a minimum ratio of one to one once the full proof-of-reserves report became available.
The exchange also said it remained on course to resume withdrawal services on Sunday, November 1, within the timeframe previously communicated to users.
The incident has raised fresh concerns about security risks in the cryptocurrency industry, particularly the protection of customer funds and the ability of exchanges to respond to large-scale cyberattacks.
Binance’s latest update suggests that the company has recovered most of the affected assets, although the remaining shortfall and the circumstances surrounding the attack are yet to be fully resolved.
About the Author
Cecilia Attah is a tech analyst with a degree from Benue State University. She covers tech news and startups at TechRegard with a focus on how technology is transforming Africa and shaping the global landscape.
