Binance covers $6 billion of $6.3 billion stolen in hack
The cryptocurrency exchange used company funds to replace most of the assets taken in a heist attributed to a North Korean unit.
Binance has recovered $6 billion of the $6.3 billion stolen from its platform during a recent hack, according to reports from India Today and Business Standard. The cryptocurrency exchange used its own money to purchase replacement tokens to cover the losses.
The US Federal Bureau of Investigation (FBI) stated on Saturday that a North Korean state-sponsored unit known as TraderTraitor was responsible for the attack. Law enforcement observed members of the unit converting stolen assets into ethereum and expects further laundering of the funds.
To cover the theft, Binance utilised its corporate treasury, its Futures Insurance Fund, and part of its $1 billion Secure Asset Fund for Users (SAFU). Co-CEO Yi He said on Saturday that 50 per cent of the SAFU funds would be used, though the company plans to replenish the reserve to $1 billion.
Co-CEO Richard Teng described the breach as a sophisticated operation that involved a compromised laptop and software intended to erase evidence of the activity. This made the investigation and tracing of the theft more difficult.
The exchange had previously halted customer withdrawals but stated it was working to reopen them on Sunday. As of 02:50 GMT on Sunday, withdrawals were not yet open. Binance has set aside approximately $6.34 billion internally to address the impact of the heist.