Binance says it has covered $6 billion of stolen crypto assets
The cryptocurrency exchange is restoring services after a $6.3 billion security breach linked to a North Korean unit.
Binance has recovered $6 billion of the $6.3 billion stolen during a recent security breach, according to reports from The Economic Times and Business Standard. The world's largest cryptocurrency exchange used company funds to purchase replacement tokens to cover the losses.
The FBI stated on Saturday that a North Korean state-sponsored group called TraderTraitor was responsible for the attack. Law enforcement officials observed the unit converting stolen assets into ether and expect further laundering of the funds through various technologies.
Binance said it is using its $1 billion Secure Asset Fund for Users, its Futures Insurance Fund, and its corporate treasury to manage the impact. Co-CEO Yi He noted that 50 per cent of the SAFU funds would be used, though the company intends to replenish the reserve to $1 billion.
The exchange has resumed services with a phased withdrawal process prioritising user demand. The first stage includes 15 tokens such as bitcoin, ether, dogecoin, and certain stablecoins like USDT and USDC.
Customer withdrawals reached $3.64 billion, representing 2.1 per cent of the platform's assets, as the exchange returned online. Ari Redbord, global head of policy at TRM Labs, suggested these outflows appeared to be a precautionary reaction rather than capital flight.
Binance reported having $171 billion in total assets under management as of October 28. The company has set aside approximately $6.34 billion in internal funds to address the heist.